Business Formulae Flashcards

Flashcards for IGCSE Business Formulae review.

Revenue

Quantity sold x Price

Productivity

Output / Quantity of input

Labor Productivity

Output / Number of employees Working

Working Capital

Current Assets - Current Liabilities

Capital Employed (or Shareholder's funds)

Total Assets - Total Liabilities

Profit

Revenue - Cost of sales

Profit (from Breakeven graph)

Total Revenue - Total Costs or TR - TA

Total Costs

Fixed Costs + Variable Costs

Average Cost

Total Costs / Total Number of units produced

Breakeven point

Fixed costs / Contribution per unit

Contribution per unit

Selling price - Variable costs

Margin of safety

Maximum output - Breakeven output

Gross profit

Revenue - Cost of sales (or Variable costs)

Gross profit margin

Gross profit / Revenue x 100

Net profit

Gross profit - Expenses (or Fixed costs)

Net profit margin

Net profit / Revenue x 100

Return on Capital Employed

Net profit / Capital Invested x 100

Current ratio

Current Assets / Current liabilities

Acid Test Ratio (or Quick Ratio)

Current Assets - Inventory (or Stock) / Current Liabilities