These are chapter wise formula sheet for AS & A Level Business 9609. Go through the formula sheet to be fully prepared for your exam!

__CHAPTER 1:__

1: **Added Value** = Selling Price – Cost of Raw Materials

__CHAPTER 3:__

2: **Market Share** = Sales of business/Sales of Industry x 100

3: **Market Capitalization**= Current share price x total no of shares Issued

__CHAPTER 7:__

4: **Income Elasticity of Demand** = __% Change in Demand
__ % Change in Income

**If Income elasticity** = ‘ –‘ negative => Inferior Good

**If Income elasticity** = + ve => Branded good

**If Income elasticity** = Low + ve =>Necessity

__CHAPTER 11:__

5: **Labour productivity** = __Total output in time period
__ Total staff employed

6: **Absenteeism (%)** = No of staff absent/Total no. of staff x 100

7: **Labour turnover** = __No of staff leaving in 1 year__ x 100

Average number of staff employed

__CHAPTER 15:__

8: **The size of each ****section in a PIE chart**=Value of one section/Total value of all sections x 360 degree

__Averages __

9: **Mean ** = __∑ ƒ χ__ = sum of results

Ƒ à No of results

10: **Median** = Central or middle value

__Median for ODD No of Observations __

= __No of values + 1
__ 2

__Median for EVEN No of Observation__

= __No of values
__ 2

**Range** = Highest values – lowest value

__CHAPTER 16:__

11: **Price Elasticity of Demand** = __% change in Qty. demanded
__ % change in Price

If PED< 1 = necessity product

If PED> 1 = luxury product

__Pricing __

12: a) __Mark up pricing__

Selling price = Total Cost + Mark up %

13:b) ** Target pricing** (according to the set targets)

- Work out total cost
- Work out expected returns

- Total Return = Total cost + expected returns

Now __selling Price__ = __Total return
__ No of units

__CHAPTER 18:__

14: **Promotional Elasticity of demand**= __ % Δ in demand
__ % Δ in promotional spending

15: **Cross elasticity of demand** = __% Δ in demand of good A
__(For product A) % Δ in price of good B

Δ = Change

__CHAPTER 20:__

16: **Productivity ** = __Output
__ Input

17: **Labour productivity=** __Total output per time period
__ Av # of workers employed

18: **Capital productivity** = __Total output per time period
__ Av value of capital employed

__CHAPTER 23:__

19: **Capacity utilization** = Current output level/Maximum output level x 100

__CHAPTER 25:__

20: **Free Float** = EST – Duration – EST

(For an activity) at end (at the beginning)

21:**Total Float**= LFT – Duration – EST

(For an activity) at end (at the beginning)

__CHAPTER 28:__

__Cost__

22: **Total Cost** = Total variable cost + total fixed cost

23: **Total variable cost** = Per Unit Variable Cost x No of units sold

24: **Total revenue** = selling price x no of units sold

25: **Contribution Margin** = P/Unit Selling Price – P/U Variable Cost

26: **Total contribution**= Per unit contribution x No of Units

27: **Breakeven **= Fixed cost/(Qty) S.P – V.C = Units

28: **Breakeven (value)** = B.E units x S.P =£

29: Profit=Total Revenue – total cost

Or

Profit=Total contribution – Fixed cost

Or

Profit= Margin of Safety units x C.M per unit

__Where__

Margin of safety = Current output – Breakeven O/P

Or

Margin of safety = Maximum output – Breakeven output

30: Required sales for Target profit = __Fixed cost + target profit
__ Selling price – variable cost

__CHAPTER 29:__

31:**Gross profit** = Sales revenue – Cost of Goods sold (COGS)

COGS = Opening stock + Purchases – closing stock

32 **Sales Revenue** = units sold x S.P per unit

33 **Net profit** = Gross Profit – Expenses (Overheads)

__Profitability Ratios __

34 **Gross Profit margin** (%) = Gross Profit /Sales Revenue x 100

35 **Net Profit margin** (%) = Net Profit/Sales Revenue __x100__

__Liquidity Ratios __

36: **Current Ratio** = __Current Assets
__ Current Liabilities

37: **Quick ratio / Acid Test Ratio** = __Current assets – stocks
__ Current liabilities

__ CHAPTER 31:__

38: **Straight line **

**Depreciation** = __Historical cost – scrap value
__ Expected life in year

39: **Net realizable value** = Final S.P- Expenses incurred to bring an asset in saleable condition.

__CHAPTER 32:__

40: **Return on capital employed**= __Net profit __x 100

Capital Employed

__Financial Efficiency Ratios __

41: **Inventory (Stock) turnover**=Cost of goods sold/Average inventories =Times

42: **Inventory turnover** = Average inventories/(Days) COGS __x365__

Where Average Inventories = __opening stock + closing stock
__ 2

43: **Dividend Yield Ratio (%)** = Dividend per share/Current share price x100

Dividend per share= __Total annual dividend
__ Total number of issued shares

44: **Dividend cover ratio**=__Profit after tax & interest
__ Annual dividends

45: **Price / earnings ratio**= __Current share price
__ Earnings per share

**Earnings per share** = __Profit after tax
__ Total number of shares

46: **Gearing Ratio** = Long term loans/Capital employed x 100

Or

**Gearing Ratio**= Long term debt/Shareholder’s equity x 100

50: **Interest cover ratio**= __Operating profit (before tax & interest)
__ Annual interest paid

__CHAPTER 33:__

51: **Payback month** =Additional net cash to complete investment/Annual Cash flow x 12

__Total cash inflows – Total cash outflows
__ Life of project

52: **ARR** =x100 Investment

53: **Net present value** = Present value of total cash inflows – Present value of cash out flows

54: **Present value **= Discount factor x future cash flows

__CHAPTER 36:__

55: **Expected value**= Expected revenue x probability

56: **Net return**= Total Expected Value – Cost

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Good Luck!