Equations
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1
Whats the equation for market size?
value of sales= number of units sold x price per unit
2
What is the equation for market growth?
market growth = (change in market size/original market size) x 100
3
What's the equation for market share?
market share= (sales of the product/total market sales) x100
4
What's the equation for total costs?
total costs = fixed costs + variable costs
5
What's the equation for total variable costs?
total variable costs = variable costs of a single unit x number of units
6
What's the equation for revenue?
number of units sold x price
7
What's the equation for profit?
Profit = Total Revenue - Total Costs
8
What's the equation for average rate of return?
ARR= (average yearly profit / cost of investment) x 100
9
What's the equation for gross profit?
Gross profit = revenue - cost of sales
10
What's the equation for net profit?
net profit = gross profit- operating expenses and taxes
11
How to calculate gross profit margin
Gross profitevenue x 100
12
How to calculate net profit margin
Net profit / revenue x 100
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