AQA A level Business Year 1 Calculations

Revenue

Selling price per unit x number of units sold

Variable costs

Variable cost per unit x number of units sold

Total costs

Fixed costs + variable costs

Profit

Total revenue - total costs

Market capitalisation

Number of issued shares x current share price

Market growth %

Change in the size of market / original size of the market x 100

Market share %

Sales of one product OR brand OR business / Total sales in the market x 100

Added value

Sales revenue - costs of bought in goods and services

Labour productivity

Output over a time period / number of employees

Unit costs (average costs)

Total costs / number of units of output

Capacity utilisation %

actual output / maximum possible output x 100

Return on investment %

Profit from investment / cost of investment x 100

Gross profit

Revenue - cost of sales (variable costs)

Operating profit

Net profit

Gross profit margin %

Gross profit/sales revenue x 100

Operating profit margin %

Net profit margin (profit for year) %

Variance

budgeted figure - actual figure

Contribution per unit

Selling price - variable cost per unit

Total contribution

Contribution per unit x number of units sold

break-even point

Fixed costs / contribution per unit

Margin of safety

Actual level of output - Breakeven level of output

Labour turnover %

Number of staff leaving / number of staff employed x 100

Employee retention rate

number of employees who remained with the business for the whole period of time / number of employees at start of the time period x 100

Employee costs as a percentage of turnover

Employee costs / sales turnover x 100

Labour cost per unit

Labour costs / units of output

ROCE %

operating profit / total equity + non current liabilities x 100