Which of these would not be used when calculating gross profit?
Sales revenue
Cost of sales
Expenses
Which of the following would the average rate of return help a business to do?
Decide whether or not to increase prices
Assess whether its performance this year is better than last year
Compare the profitability of different investment opportunities
Which of these would not be included as an expense when calculating net profit?
Raw materials
Rent
Insurance
What is the correct formula for the gross profit margin?
(Net profit ÷ sales revenue) × 100
(Gross profit ÷ sales revenue) × 100
(Sales revenue ÷ gross profit) × 100
A cake shop sells £19,800 worth of products a week. If its expenses are £2,800 per week and the cost of sales is £15,200 per week, what is its weekly net profit?
12400
1800
17000
A business makes a gross profit of £300,000. If its sales revenue is £650,000, what is its gross profit margin?
0.5385
0.0217
0.4615
It costs a business £27,000 to make products that it sells for a total of £48,000. Its expenses are £20,000. How much gross profit does the business make?
21000
28000
7000
Which of the following will always improve the net profit margin of a business?
Reducing expenses
Reducing prices
Increasing interest payments
An investment opportunity that would cost £25,000 is expected to last two years and increase profits by £15,000. What is the average rate of return on the investment?
0.6
0.3
0.15
If a business has a net profit margin of 23%, which of the following must be true?
For every £1 of goods sold by the business, it has made a net profit of 77p
The expenses of the business are higher than its gross profit
The business has made a net profit