The formula to calculate the Net Product Percentage (NPP) is:
\[ NPP = \frac{PR}{TR} \times 100 \]
Where:
Net Product Percentage is a metric used to determine the proportion of revenue generated by a specific product relative to the total revenue. It is calculated by dividing the product revenue by the total revenue and then multiplying by 100. This metric helps businesses understand the contribution of individual products to overall revenue.
Let's say the product revenue (PR) is $5,000, and the total revenue (TR) is $50,000. Using the formula:
\[ NPP = \frac{5,000}{50,000} \times 100 = 10 \]
So, the Net Product Percentage (NPP) is 10%.