Business Calculations: Understanding Gross Profit, Net Profit, and Average Rate of Return

This video tutorial covers essential business calculations at the GCSE level, focusing on managing finances for business growth and sustainability. It explains how to calculate and interpret gross profit margin, net profit margin, and average rate of return, providing examples and strategies for improving profitability. The tutorial emphasizes the importance of understanding these metrics for effective financial management and investment decision-making.

What is the significance of expressing profit margins as percentages?

What are the two main ways to boost net profit?

How does a business determine which investment project to choose based on ARR?

Discuss the potential drawbacks of using the average rate of return as a metric.