A. CALCULATION:
1. Profit = total revenue – total costs
2. Contribution = selling price per unit – variable cost per unit
= sales revenue – variable costs
Contribution – fixed costs = profit
fixed costs of the business
3. Break even output = contribution per unit
Break-even <=> revenue = total costs
gross profit
4. Gross profit margin (%) = sales revenue x 100
net profit
Net profit margin (%) = sales revenue x 100
number of leavers per year
5. Labour turnover = average number of employees per year
total output in a given time period
Output per employee / labour productivity = total number of employees
total labour costs
Labour cost per unit of output = total output in a certain time period
total value of output
Productivity = total number of hours worked
average number of staff absent on one day
6. Absenteeism = total number of staff x 100
current output
7. Capacity utilisation = maximum output x 100
total costs
Unit cost = output
(bigger quantity - smaller quantity) : old quantity x 100%
8. Price elasticity of demand = (greater price - smaller price) : old price x 100%
% change in quantity demand
= % change in price ( <1 – inelastic , >1 – elastic )
net profit
9. Return on capital = capital x 100
revenue
10. Market size = market share (%)
11. Variance = actual figure – budgeted figure
Varian <0 => adverse
Varian >0 => favourable
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1. Profit = total revenue – total costs
2. Contribution = selling price per unit – variable cost per unit
= sales revenue – variable costs
Contribution – fixed costs = profit
fixed costs of the business
3. Break even output = contribution per unit
Break-even <=> revenue = total costs
gross profit
4. Gross profit margin (%) = sales revenue x 100
net profit
Net profit margin (%) = sales revenue x 100
number of leavers per year
5. Labour turnover = average number of employees per year
total output in a given time period
Output per employee / labour productivity = total number of employees
total labour costs
Labour cost per unit of output = total output in a certain time period
total value of output
Productivity = total number of hours worked
average number of staff absent on one day
6. Absenteeism = total number of staff x 100
current output
7. Capacity utilisation = maximum output x 100
total costs
Unit cost = output
(bigger quantity - smaller quantity) : old quantity x 100%
8. Price elasticity of demand = (greater price - smaller price) : old price x 100%
% change in quantity demand
= % change in price ( <1 – inelastic , >1 – elastic )
net profit
9. Return on capital = capital x 100
revenue
10. Market size = market share (%)
11. Variance = actual figure – budgeted figure
Varian <0 => adverse
Varian >0 => favourable
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