Which of these would not be used when calculating gross profit?
Sales revenue
Cost of sales
Expenses
What is the formula for gross profit?
Revenue – expenses
Selling price × quantity sold
Revenue – cost of sales
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?
£12,400
£1,800
£17,000
A business makes a gross profit of £300,000. If its sales revenue is £650,000, what is its gross profit margin?
53.85%
2.17%
46.15%
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?
£21,000
£28,000
£7,000
Which of the following will always improve the net profit margin of a business?
Reducing expenses
Reducing prices
Increasing interest payments
Which is an example of a cost of sale?
Packaging materials
Insurance costs
Interest on loans
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