A-Level Edexcel Business calculatuons up to 3.5

Revenue

Price × Quantity

Costs

Fixed Costs + Variable Costs

Profit

Revenue – Costs

Profit Margin (%)

(Profit ÷ Revenue) × 100

Market Share (%)

(Business Sales ÷ Total Market Sales) × 100

Sales Growth (%)

((Current Period Sales – Previous Period Sales) ÷ Previous Period Sales) × 100

Market Growth (%)

((Current Market Size – Previous Market Size) ÷ Previous Market Size) × 100

Price Elasticity of Demand (PED)

% Change in Quantity Demanded ÷ % Change in Price

Average Rate of Return (ARR) (%)

(Average Annual Profit ÷ Initial Investment) × 100

Payback Period

Number of years before full recovery + (Remaining cost ÷ Cash inflow of next year)

Net Present Value (NPV)

NPV(Discount rate, Cash flows) – Initial Investment

Break-Even Output

Fixed Costs ÷ (Selling Price – Variable Cost per unit)

Contribution per Unit

Selling Price per Unit – Variable Cost per Unit

Margin of Safety

Actual Output – Break-even Output

Productivity

Output ÷ Number of Employees

Labour Turnover (%)

(Number of staff leaving ÷ Average number of staff) × 100

Absenteeism (%)

(Number of Days Lost ÷ Total Possible Days) × 100

Labour Retention (%)

(Number of staff staying ÷ Total number of staff) × 100

Labour Productivity Growth (%)

((Current Productivity – Previous Productivity) ÷ Previous Productivity) × 100

Unit Labour Cost

Labour Costs ÷ Output

Revenue per Employee

Revenue ÷ Number of Employees

Average Wage

Total Wage Costs ÷ Number of Employees