AQA A-Level Business Studies Mathematical Formulae

What is the formula for Revenue?

Revenue = Price × Quantity Sold

What is the formula for Total Costs?

Total Costs = Fixed Costs + Variable Costs

What is the formula for Profit?

Profit = Revenue − Total Costs

What is the formula for Gross Profit?

Gross Profit = Revenue − Cost of Sales

What is the formula for Operating Profit?

Operating Profit = Gross Profit − Operating Expenses

What is the formula for Net Profit?

Net Profit = Operating Profit − Finance Costs & Tax

What is the formula for Break‑Even Output?

Break‑Even = Fixed Costs ÷ Contribution per Unit

What is Contribution per Unit?

Contribution per Unit = Selling Price − Variable Cost per Unit

What is Total Contribution?

Total Contribution = Contribution per Unit × Units Sold

What is Margin of Safety?

Margin of Safety = Actual Output − Break‑Even Output

What is the formula for Gross Profit Margin?

Gross Profit Margin = (Gross Profit ÷ Revenue) × 100

What is the formula for Operating Profit Margin?

Operating Profit Margin = (Operating Profit ÷ Revenue) × 100

What is the formula for Net Profit Margin?

Net Profit Margin = (Net Profit ÷ Revenue) × 100

What is the formula for Current Ratio?

Current Ratio = Current Assets ÷ Current Liabilities

What is the formula for Acid‑Test Ratio?

Acid‑Test = (Current Assets − Inventory) ÷ Current Liabilities

What is the formula for Labour Productivity?

Labour Productivity = Output ÷ Number of Employees

What is the formula for Labour Turnover?

Labour Turnover = (Number of Staff Leaving ÷ Average Number Employed) × 100

What is the formula for Absenteeism?

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

What is Market Share?

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

What is Market Growth?

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

What is Sales Growth?

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

What is Capacity Utilisation?

Capacity Utilisation = (Actual Output ÷ Maximum Output) × 100

What is Unit Cost?

Unit Cost = Total Costs ÷ Output

What is Employee Retention Rate?

Retention Rate = (Employees Staying ÷ Total Employees) × 100

What is Employee Costs as a % of Revenue?

Employee Costs % = (Employee Costs ÷ Revenue) × 100

What is Average Rate of Return (ARR)?

ARR = (Average Annual Profit ÷ Initial Investment) × 100

What is Net Present Value (NPV)?

NPV = Total Present Value of Cash Inflows − Initial Investment