Basic Business Calculations Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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How do you calculate total revenue for a business?

Total revenue = selling price × quantity sold. Example: £8 × 250 = £2,000.

How do you calculate total variable cost?

Total variable cost = variable cost per unit × number of units. Example: £3 × 200 = £600.

How do you calculate total cost?

Total cost = fixed costs + total variable costs. Example: £1,000 + £600 = £1,600.

How do you calculate profit or loss?

Profit (or loss) = total revenue − total costs. Example: £2,000 − £1,600 = £400 profit.

What is break-even output and how do you calculate it?

It is the number of units needed to cover all costs. Break-even output = fixed costs ÷ contribution per unit. Example: £900 ÷ £3 = 300 units.

How do you calculate contribution per unit?

Contribution per unit = selling price − variable cost per unit. Example: £10 − £6 = £4.

How do you calculate percentage change?

Percentage change = (new − original) ÷ original × 100%. Example: from 200 to 250: (50 ÷ 200) × 100% = 25%.

How do you find the mean (average) of a set of sales figures?

Add all the values, then divide by how many there are. Example: 10, 12, 8 → (10 + 12 + 8) ÷ 3 = 10.

How do you find the median in a data set?

Put the values in order, then pick the middle one. If two are in the middle, find their mean.

What is the mode in a data set?

The value that occurs most often. There can be more than one mode or none.

How do you calculate the range of sales data?

Range = highest value − lowest value. It shows the spread.

How do you calculate a firm’s market share?

Market share = the firm’s sales ÷ total market sales × 100%. Example: 50,000 ÷ 200,000 × 100% = 25%.