EQUATIONS

Question 0

Return capital

Answer 0

RETURN ON CAPITAL INVESTED= NET PROFIT BEFORE TAX/CAPITAL INVESTED x100

Question 1

Net Profit Margin

Answer 1

Net profit margin= Net profit before tax/sales(turnover) x 100

Question 2

Labour productivity

Answer 2

Labour productivity= output per period/ number of employees per period

Question 3

Labour Turnover

Answer 3

Labour turnover= Number leaving a business over a given period/ average number employed over a given period x100

Question 4

Rate of absenteeism

Answer 4

Rate of absenteeism= Number of staff absent on 1 day/ Total number of staff x100

Question 5

Annual rate of absenteeism

Answer 5

Annual rate of absenteeism= Total number of days lost due to absence during the year / Total number of days that could be worked (x number of staff) x100

Question 6

Rate of absenteeism due to health and safety

Answer 6

Rate of absenteeism due to health and safety= Number of working days lost per year for health and safety reasons/ total number of possible working days per year x100

Question 7

Unit cost

Answer 7

Unit cost= Total Cost/Unit of output

Question 8

Punctuality

Answer 8

Punctuality= Deliveries on time/ Total deliveries x100

Question 9

Capacity Utilisation

Answer 9

Capacity Utilisation= Actual output per annum(month)/ maximum possible output per annum(month) x100

Question 10

Price elasticity of demand

Answer 10

PED= %Change in quantity demanded/ %change in price