THEME 1

Market share = (Sales of a product or business/ Total market sales) x 100

Market growth= Market size (now) – Market size (old)/ market size (old) x100

Price elasticity of demand = % Change in quantity demanded/ % Change in price

Income elasticity of demand = % Change in quantity demanded/ % Change in income

THEME 2

Net cash flow = Total inflows – Total outflows

Sales volume = total number of units sold over a period of time

Sales revenue = number of units sold x unit price

Total variable costs = number of units sold x variable cost per unit

Total costs = Fixed costs + variable costs

Contribution per unit = Selling price per unit – Variable cost per unit

Total contribution = Contribution per unit x Number of units sold

Break-even = Fixed costs/ Contribution per unit

Margin of safety = Actual Sales/Output – Break even output

Variance = Actual – Budget

Gross profit = Sales revenue minus cost of sales

Operating profit = Gross profit minus overheads

Net profit = Operating Profit +/- finance costs

Gross profit margin = (Gross profit / Sales revenue) x 100

Operating profit margin = (Operating profit/ Sales revenue) x 100

Profit for the year (net profit) margin = (Profit for the year / Sales revenue) x 100

Current ratio = Current assets/ current liabilities

Acid test ratio = (Current assets – stock) / current liabilities

Productivity (labour) = Output per period (units)/ Number of employees in that period

Average unit cost= Total costs / total output

Capacity utilisation = (Actual level of output/ Maximum possible output) x 100