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
IF you have any questions feel free to leave a comment below.
Good Luck!
