Please help!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
I'm stuck on the simplest of things and feel really embarrassed. Hope someone can help me. I have the Unit 4 skills test on Wednesday and i've been practising by doing the student activities in my Osborne Tutorial book (Q 23.9 if anyone has it). At the end of the question you get total profit for each section which is £105 Newspapers, £170 Books and £25 stationery. The total investment or each section is £420 Newspapers, £850 books and £250 stationery. They go on to express this as a percentage and now i'm baffled. In the answer it says 25% newspapers, 20% books and 10% stationery. How do they get to this? What is the formula for getting to the percentage? I should probably know this but I honestly don't. Please help!



Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help!!!

    Hi there

    You divide the profit by the amount of investment (or capital) then times by 100.

    So 105/420 x 100 = 25%

    170/850 x 100 = 20%

    25/250 x 100 = 10 %

    I believe this is called return on capital employed.

    Good luck

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help!!!

    Thankyou so much Columbia, you are a star xxx
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Please help!!!

    You're welcome!

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