ALL FORMULAS

% mark up

(Difference in price/original cost) X 100

Price elasticity of demand (PED)

% change in quantity demanded / % change in price

Income elasticity of demand (YED)

% change in quantity demanded/% change in income

net cash flow

cash inflows - cash outflows

opening balance

cash balance at the start of the month

closing balance

opening balance + net cash flow

sales revenue

selling price X quantity sold

total variable costs

variable cost per unit X quantity sold

total costs

fixed costs + variable costs

profit

total revenue - total costs

break even output

fixed costs/contribution per unit

contribution per unit

selling price per item - variable cost per item

total contribution

contribution per unit X quantity sold

margin of safety

actual output - break even ouput

profit

contribution - fixed costs

budget variance

budget amount - actual amount

gross profit

sales revenue - cost of sales

gross profit margin

(gross profit/revenue) X 100

operating profit

gross profit - total costs

operating profit margin

(operating profit/revenue) X 100

current ratio

current assets/current liabilities

acid test ratio

(current assets - stock)/current liabilities

labour productivity

output/number of employees

labour turnover

number of employees leaving/total number of employees X 100

average cost per unit

total production costs/total output

capacity utilisation

actual output/maximum possible output X 100

market share

share of one company/total shares of all x 100