Gross Profit Analysis

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £25,000

What is the gross profit?

• £25,000

• £50,000

• £100,000

• £75,000

What is the gross profit margin formula?

• Net profit / Total revenue x 100

• Gross profit / Total revenue x 100

• Total revenue / Gross profit x 100

• Cost of sales / Total revenue x 100

Revenue = £80,000

Cost of sales = £30,000

Other expenses = £10,000

What is the total net profit?

• £70,000

• £65,000

• £50,000

• £40,000

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £40,000

What is the gross profit margin?

• 35%

• 50%

• 10%

• 85%

What will impact the gross profit margin?

• Cost of sales increase

• Decrease in operating (other) expenses

• Sales price charged remaining the same

• Increase in operating (other) expenses

Why might the gross profit margin go down?

• The enterprise has improved their profitability

• Enterprise charging lower prices

• Enterprise charges the same prices

• Enterprise charging higher prices

Why might the gross profit margin go up?

• Cost of sales have decreased

• Cost of sales have increased

• Operating (other) expenses have increased

• Operating (other) expenses have decreased

Gross profit is the difference between ____

• Sales revenue and total costs

• Sales revenue and cost of sales

• Sales revenue and other expenses

• Sales revenue and fixed costs

Revenue = £200,000

Cost of sales = £160,000

Operating (other expenses) = £20,000

What is the total gross profit?

• £40,000

• £20,000

• £180,000

• £65,000

Total revenue = £100,000

Cost of sales = £70,000

Operating (other) expenses = £10,000

What is the net profit margin?

• 40%

• 30%

• 20%

• 10%