1. The matrix of the complete table has nine or twelve rows.
Lines 10 to 12 are supplemented only on the condition indicated: in this case, the parent enterprise is the legal-entity enterprise, i.e. the one with which suppliers and customers contract. When this is not the case, the parent is one of the margin-producing units of the legal-entity enterprise.
| A | B | C | ||
|---|---|---|---|---|
| Child 1 | Child 2 | Parent | ||
| 1 | Direct investment | 100 | 200 | 450 |
| 2 | Turnover | 500 | 400 | 900 |
| 3 | Direct costs | 300 | 240 | {540 |
| 4 | Direct margin | 200 | 160 | {360 |
| 5 | Direct profitability R | 200% | 80% | 20% |
| 6 | Direct productivity P | 5 | 2 | {3 |
| 7 | Direct profitability P' | 40% | 40% | {40% |
| 8 | Common costs | 340 | ||
| 9 | Direct margin (C4 – C8) | 20 | ||
| If the parent enterprise is the legal-entity enterprise: | ||||
| 10 | its profitability R (C9/C1) | 4,4% | ||
| 11 | its productivity P(C2/C1) | 2 | ||
| 12 | its profitability (C9/C2) | 2,2 % |
In lines 10 and 11 above, the profitability and productivity are those of the investments of this enterprise. If the latter is, for example, an enterprise whose capital is equal to 70% of the investments, i.e. 315, then its largest RPP' is as follows:
| 9 | Final margin (C4-C8) | 20 |
|---|---|---|
| 10 | Return on capital R (C9/315) | 6,4% |
| 11 | Productivity of capital P (C2/315) | 2,9 |
| 12 | Profitability of sales P' (C9/C2) | 2,2% |
2. The profitability, productivity and profitability of legal-entity enterprises are of the same nature:
If, in the case at hand, the number of legal-entity enterprises is one million, then on this basis alone competition is likely to regulate, encourage and deter by a million RPP relationships. Anyone who has not seen this is exposed to misjudging the machinery that constitutes a market economy because all legal-entity enterprises of the same nationality are potentially all competing on the capital market through their profitability.
3. The direct profitability, direct productivity and direct profitability of the margin production centres internal to legal-entity-enterprises are in clusters of the same affiliation.
If the average number of margin production centres per legal-entity-enterprise is one thousand and the number of these enterprises is one million, then competition is likely to regulate, encourage and deter by a thousand and one million RPP relationships. This only reinforces what has been estimated above: those who have not seen this are exposed to misjudging the machinery that constitutes a market economy because all the entities recursively producing margins, positive or negative, and from the creation to the disappearance of each of them, are potentially subject to a normal level of direct profitability.