AQA A-Level Business Studies Mathematical Formulae

What is the formula for Revenue?

Price × Quantity Sold

What is the formula for Total Costs?

Fixed Costs + Variable Costs

What is the formula for Profit?

Revenue − Total Costs

What is the formula for Gross Profit?

Revenue − Cost of Sales

What is the formula for Operating Profit?

Gross Profit − Operating Expenses

What is the formula for Net Profit?

Operating Profit − Finance Costs & Tax

What is the formula for Break‑Even Output?

Fixed Costs ÷ Contribution per Unit

What is Contribution per Unit?

Selling Price − Variable Cost per Unit

What is Total Contribution?

Contribution per Unit × Units Sold

What is Margin of Safety?

Actual Output − Break‑Even Output

What is the formula for Gross Profit Margin?

(Gross Profit ÷ Revenue) × 100

What is the formula for Operating Profit Margin?

(Operating Profit ÷ Revenue) × 100

What is the formula for Net Profit Margin?

(Net Profit ÷ Revenue) × 100

What is the formula for Labour Productivity?

Output ÷ Number of Employees

What is the formula for Labour Turnover?

(Number of Staff Leaving ÷ Average Number Employed) × 100

What is the formula for Absenteeism?

(Number of Days Absent ÷ Total Working Days) × 100

What is Market Share?

(Firm’s Sales ÷ Total Market Sales) × 100

What is Market Growth?

(New Market Size − Old Market Size) ÷ Old Market Size) × 100

What is Sales Growth?

(New Sales − Old Sales) ÷ Old Sales) × 100

What is Capacity Utilisation?

(Actual Output ÷ Maximum Output) × 100

What is Unit Cost?

Total Costs ÷ Output

What is Employee Retention Rate?

(Employees Staying ÷ Total Employees) × 100

What is Employee Costs as a % of Revenue?

(Employee Costs ÷ Revenue) × 100

What is Average Rate of Return (ARR)?

(Average Annual Profit ÷ Initial Investment) × 100