The yield, or return on capital invested, is the effective interest earned by investing money in stock, given the normal rate of sale. The rate of sale is calculated using the past five weeks, plus a five-week period the year before. Profit is calculated using the last known purchase price and the current selling price. Credit provided is effectively free capital and in cases where the product is likely to sell before being paid for, an arbitrary high value is quoted (10000), as calculation is not possible. Yield can be used to decide whether to buy a product whenever the amount of capital available is limited. The cost of wastes is not used in the calculation. |
|