Business Paper 2 - Calculations Edexcel A Level Correct questions and answers

verage Costs Per Unit - ANSWER-Total Production Costs ÷ Total Output (Units) Net Present Value - ANSWER-Cash flow x Discount Factor (Predicted rate of Inflation) Average Rate of Return - ANSWER-Net Return (Profit per annum) ÷ Capital Outlay Cost (start cost) x 100 Payback Period - ANSWER-Costs of Project (Investment) ÷ Net Cash Flow Generated x 12 Revenue - ANSWER-Selling Price x Units Sold Gross Profit - ANSWER-Revenue - Cost of Sales Operating Profit - ANSWER-Gross Profit - Expenditure Profit After Tax - ANSWER-Operating Profit - Financial costs/Taxes Gearing - ANSWER-Non-current Liabilities ÷ (Total Equity + Non-current Liabilities) x 100 Acid Test Ratio - ANSWER-(Current Assets - Inventories) ÷ Current Liabilities Current Ratio - ANSWER-Current Assets ÷ Current Liabilities Gross Profit Margin - ANSWER-Gross Profit ÷ Revenue x 100 Net Profit Margin - ANSWER-Net Profit ÷ Revenue x 100 Return On Capital Employed - ANSWER-(Operating Profit ÷ Total Equity) + Non-current Liabilities x 100 Labour Productivity - ANSWER-Output in period (units) ÷ Number of Employees Working Labour Retention - ANSWER-Staff not leaving per year ÷ Average Number of Staff x 100 Labour Turnover - ANSWER-Number of Employees leaving during the period ÷ Average number employed during the period x 100 Absenteeism - ANSWER-Number of days of unauthorised absence ÷ Total Days worked by workforce over the period x 100 Total Float Time - ANSWER-LFT - EST - Duration of Activity