business formulas final

Contribution per Unit

P - AVC

Total Contribution

TR - VC

Contribution

(P - AVC) × Q

Profit

Total Contribution - FC

Break-even Quantity (BEQ)

FC / (P - AVC)

Margin of Safety

Current Output - Break-even Output

Target Profit Output (TP):

(FC + TP) / Contribution per Unit

Target Price:

AFC + AVC

Target Profit

(TPO × contribution per unit) - FC

Annual Depreciation

(Original Cost - Residual Value) / Expected Useful Life of Asset

Units of Production Rate

(Cost of Asset - Salvage Value) / Estimated Units of Production

Depreciation Expense per Unit

Units Produced × Units of Production Rate

Payback Period

Initial Investment Cost / Annual Cash Flow from Investment

ARR (%)

(Annual Cash Flow / Initial Investment) × 100

Market Share

(Firm Sales / Total Market Sales) × 100

Market Growth (%)

[(Market Size This Year - Market Size Last Year) / Market Size Last Year] × 100

Price Elasticity of Demand

% Change in Quantity Demanded / % Change in Price

Debtor Rate (%)

(Number of Invoices on Time / Total Output) × 100

Labour Productivity

Total Output / Total Units Worked

Working Capital

Current Assets - Current Liabilities

Working Capital Productivity (%)

(Sales Revenue / Working Capital) × 100

Operating Leverage

Q × (P - AVC)/Q × (P-AVC) - FC

Operating Leverage

Total Contribution / total contribution - FC

CTB

P × Q

CTM

FC+VC