Edexcel A-Level Business Formulas Questions with Correct Answers

% mark up - (Difference in price/original cost) X 100 % change - ((New value - old value)/old value) X 100 Price elasticity of demand (PED) - % change in quantity demanded/% change in price Income elasticity of demand (YED) - % change in quantity demanded/% change in income Net cash flow - Cash inflows - Cash Outflows. This shows how much cash you should have at the end of a period of time given the amount coming in and going out. Opening balance - Cash balance at the start of the month. (The closing balance of the previous month). Closing balance - Opening balance + net cash flow Cumulative Cash Flow - Sum of all closing balances Sales Revenue - Selling price X quantity sold Total variable costs - Variable cost per unit X quantity sold Total costs - Fixed costs + variable costs Profit - Total revenue - total costs Break even output (Break-even is the level of output where Total Costs are equivalent to Total Revenue) - Fixed costs/contribution per unit *The contribution per unit is the difference between the sales price and the variable cost per unit*. Contribution per unit - Selling price per item - variable cost per item Total contribution - Contribution per unit x Quantity sold OR Total Revenue - Total Variable Costs Margin of Safety - Actual output - break even output Budget variance (how much the planned budget differed from the actual budgeted amount) - Budget amount - actual amount