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Business A-Level Edexcel Paper 2 Cheat Sheet by

all the formulas needed for paper 2 in the 2022 advanced information

Business Paper 2 Formulas

profit budget
income budget - expend­iture budget
break-even
fixed cost/c­ont­rib­ution per unit
contri­bution per unit
selling price - variable cost per unit
margin of safety
planned output - break-even output
profit
(contr­ibution per unit x quantity produced) - fixed costs
gross profit
revenue - cost of sales
operating profit
gross profit - operating costs
net profit
operating profit + profit from other activities - net finance costs - tax
gross profit margin
(gross profit­/re­venue) x100
operating profit margin
(operating profit­/re­venue) x100
net profit margin
(net profit­/re­venue) x100
current ratio
current assets­/cu­rrent liabil­ities
acid test ratio
(current assets – invent­ory­)/c­urrent liabil­ities
capacity utilis­ation
(actual output­/ma­ximum possible output) x100
gearing ratio
(non-c­urrent liabil­iti­es/­capital employed) x100
return on capital employed
(operating profit­/ca­pital employed) x100
capital employed
total equity + non-cu­rrent liabil­ities
 

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  • Published: 29th May, 2022

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