A level business calculations

Total Contribution

Total Revenue - Total Variable Costs

Contribution Per Unit

Selling Price(per unit) - Variable Cost(per unit)

Break Even Point

Fixed Costs ∻ Contribution Per Unit

Margin of Safety

Actual level of Output - Breakeven level of Output

Market Size(VOLUME)

Is the quantity of goods & services produced in a particular market over a period of time (1 year)

Market Size(VALUE)

Is the total sales revenue generated from selling all of the good & services produced in a particular market over a period of time ( 1 year)

Sales Volume

Is the quantity of goods & services produced by a particular business over a period of time ( 1 year)

Sales Value

Is the total sales revenue of a particular business over a period of time ( 1 year)

Market Growth % in year X

Change in size of the market between year (x-1) and year x ∻ Size of market in yr (x-1)

Market Share %

Sales of one product/brand/business ∻ Total Sales in Market x 100

Sales Growth % in year X

Change in sales of product/business between yr (X-1) and yr X ∻ Sales of product/business in yr (X-1)

Total Costs

Fixed Costs + Variable Costs

Variable Costs(TOTAL VARIABLE COSTS)

Variable Cost Per Unit x N.O Units Sold

Total Revenue(SALES REVENUE/TURNOVER)

Selling Price Per Unit x N.O Units Sold

Market Capitalisation

N.O Issued Shares x Current Share Price

Price Elasticity of Demand (PED)

% Change in quantity Demand ∻ % Change in Price

PRICE ELASTIC =

PRICE INELASTIC =

Income Elasticity of Demand (IED)

% change in Income ∻ % change price

1 LUXARY / 0 NORMAL / -1 INFERIOR

Added Value(VALUE ADDED)

Sales Revenue - Costs of bought in goods & services

Labour Productivity

Output Per Time Period ∻ N.O Employees

Labour Turnover %

N.O Staff leaving during yr ∻ Average N.O Staff employed by business during yr x 100

Capacity Utilisation

Actual Output in given time period ∻ Maximum Possible Output in given time period x 100

Unit Costs

Total Costs Of Production ∻ N.O Units of Ouput Produced

Return On Investment (ROCE)

Return On Investment £ ∻ Cost Of The Investment £ x 100

Gross Profit

Sales Revenue - Cost Of Sales

Gross Profit Margin %

Gross Profit ∻ Sales Revenue x 100

Profit From Operations (OPERATING PROFIT)

Sales Revenue - Cost Of Sales - Operating Expenses

Operating Profit Margin % (PROFIT FROM OPERATING MARGIN)

Profit for Yr ∻ Sales Revenue x 100

Profit for Year

Operating Profit + Profit From Other Activities - Net Finance - Tax

Profit for Year Margin %

Profit for Yr ∻ Sales Revenue x 100

Variance

Actual - Budgeted figure

Labour Cost Per Unit

Labour Costs ∻ Units of Output

Current Ratio :

Current Assets ∻ Current Liabilities

Gearing Ratio %

Non-Current Liabilities ∻ Total Equity + Non-Current Liabilities

Payables Days

Payables ∻ Cost of Sales x 365

Receivables Days

Receivables ∻ Sales Revenue x 365

Average Rate of Return (ARR) %

Net Return from Project £ / N.O Yrs ∻ Initial Cost of Project x 100

Inventory Turnover

Cost of Goods Sold ∻ Average Inventories Held