Calculations: Business: Pearson (Edexcel): GCSE (9:1)

Total Costs

Total costs = variable costs + fixed costs

Average Unit Costs

Average unit cost = total cost ➗output

Profit

Profit = revenue - costs

Market Share

Sales value or volume of your business x100 ➗ Sales value or volume of the whole market

Market Growth

Change in sales value or volume x100 ➗ Original sales value or volume

Average Rate of Return

ARR (%) = Average Annual Profit x100 ➗ Initial Investment

Break-Even Output

Total Costs = Total Revenue

Net Cash Flow

Total cash inflows - total cash outflows

Closing Balance Cash flow

Opening Balance + net cash flow

Opening Balance Cash flow

Closing balance of the previous month

Gross Profit

Revenue - Costs of Sales

Operating Profit

Gross Profit - Overheads or expenses

Net Profit

Operating Profit - tax - finance costs

Gross Profit Margin

Gross profit x100 ➗ Sales revenue

Net Profit Margin

Net profit x100 ➗ Sales revenue

Net Current Assets

Current assets - current liabilities

Net Assets

Non-current assets + net current assets - non-current liabilities

Total Equity

Share capital + Retained Profits