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all the formulas needed for paper 2 in the 2022 advanced information
Business Paper 2 Formulasprofit 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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