Unit 2 - Business Formulas

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Net Profit Margins -  Net profit margin expresses profit as a proportion of the levels of sales (turnover) net profit margin = (net profit x 100%) / sales (turnover).

Return on capital - Capital is the money put into a business by the owner when it is first established, or in order to buy new equipment or machinery, or to invest in a new project. Return on capital means the percentage return on this capital investment. Return on capital = return / capital invested (x100%).

Labour productivity - labour productivity = output / number of employees. Example ; if the output of a…


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