BUSINESS FORMULAS

THEME 1

Market Share

Total Sales of Business / Total sales in market x 100

Price Elasticity of Demand

% Change in quantity demanded / % Change in price

Income Elasticity of Demand

% Change in quantity demanded / % Change in income

% Mark Up (Cost - Plus Pricing)

Unit cost + mark up

Unit Cost

Total costs / Number of units

THEME 2

Sales Volume

Sales Revenue / Selling Price

Sales Revenue

Selling Price / Sales Volume

Total Variable Costs

Average Variable Costs x Quantity Sold per unit

Total Costs

Variable Costs + Fixed Costs

Total Revenue

Quantity Sold x Average Selling Price

Net Cash Flow

Total Cash Inflow - Total Cash Outflow

Opening Balance

Closing Balance from previous period

Closing Balance

Opening Balance + Net Cash Flow

Sales Revenue

Price x Quantity Sold

Total Costs

Total Fixed Costs + Total Variable Costs

Break Even

Fixed Costs / (Selling Price per Unit - Variable Costs per Unit)

Contribution per Unit

Selling Price per Unit - Variable Cost per Unit

Total Contribution

Contribution per Unit x Quantity sold