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Teaching guide: formulae and key data - AQA

formulae and key data First published: 4 June 2015, Revised: 29 August 2018. This is a list of formulae to support Teaching of our AS/A-level business specification (7131/7132). Number Formula 1 Revenue (Sales or Turnover) =. Selling price per unit Number of units sold Variable costs (Total variable costs) =. Variable cost per unit Number of units sold Total costs =. Fixed costs + Variable costs Profit =. Total revenue Total costs OR. Total contribution Fixed costs 2 Market capitalisation of a business =. Number of issued shares Current share price 3 Expected value of a decision with two possible outcomes eg. A & B =. Pay-off of A probability of A + Pay-off of B probability of B . Net gain =. Expected value Initial cost of decision 4 Market growth (%) =.

2 . Market capitalisation of a business = Number of issued shares × Current share price 3 : Expected value of a decision with two possible outcomes eg. A & B = Pay-off of A × probability of A + Pay-off of B × probability of B Net gain = Expected value −Initial cost of decision 4 . …

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