AQA A-Level Business Formulas SOLUTION FALL-2023 EDITION AID GRADE A+

Total Contribution Total Revenue - Total Variable Costs Contribution Per Unit Selling Price(per unit) - Variable Cost(per unit) Break Even Point Fixed Costs ∻ Contribution Per Unit Margin of Safety Actual level of Output - Breakeven level of Output Market Size(VOLUME) Is the quantity of goods & services produced in a particular market over a period of time (1 year) Market Size(VALUE) Is the total sales revenue generated from selling all of the good & services produced in a particular market over a period of time ( 1 year) Sales Volume Is the quantity of goods & services produced by a particular business over a period of time ( 1 year) Sales Value Is the total sales revenue of a particular business over a period of time ( 1 year) Market Growth % in year X Change in size of the market between year (x-1) and year x ∻ Size of market in yr (x-1) Market Share % Sales of one product/brand/business ∻ Total Sales in Market x 100 Sales Growth % in year X Change in sales of product/business between yr (X-1) and yr X ∻ Sales of product/business in yr (X-1) Total Costs Fixed Costs + Variable Costs Variable Costs(TOTAL VARIABLE COSTS) Variable Cost Per Unit x N.O Units Sold Total Revenue(SALES REVENUE/TURNOVER) Selling Price Per Unit x N.O Units Sold Market Capitalisation N.O Issued Shares x Current Share Price Price Elasticity of Demand (PED) % Change in quantity Demand ∻ % Change in Price PRICE ELASTIC = PRICE INELASTIC = Income Elasticity of Demand (IED) % change in Income ∻ % change price 1 LUXARY / 0 NORMAL / -1 INFERIOR Added Value(VALUE ADDED) Sales Revenue - Costs of bought in goods & services Labour Productivity Output Per Time Period ∻ N.O Employees Labour Turnover % N.O Staff leaving during yr ∻ Average N.O Staff employed by business during yr x 100 Capacity Utilisation Actual Output in given time period ∻ Maximum Possible Output in given time period x 100 Unit Costs Total Costs Of Production ∻ N.O Units of Ouput Produced Return On Investment (ROCE) Return On Investment £ ∻ Cost Of The Investment £ x 100 Gross Profit Sales Revenue - Cost Of Sales Gross Profit Margin % Gross Profit ∻ Sales Revenue x 100 Profit From Operations (OPERATING PROFIT) Sales Revenue - Cost Of Sales - Operating Expenses Operating Profit Margin % (PROFIT FROM OPERATING MARGIN) Profit for Yr ∻ Sales Revenue x 100 Profit for Year Operating Profit + Profit From Other Activities - Net Finance - Tax Profit for Year Margin % Profit for Yr ∻ Sales Revenue x 100 Variance Actual - Budgeted figure Labour Cost Per Unit Labour Costs ∻ Units of Output Current Ratio : CONTINUED..