Business Calculation Edexcel 1.4

What is the formula to calculate profit?

• Profit = Revenue / Cost

• Profit = Revenue + Cost

• Profit = Revenue - Cost

• Profit = Revenue * Cost

Calculate the profit if the revenue is $500 and the cost is $300.

• 200

• 50

• 400

• 100

What is the formula to calculate gross profit margin?

• (Gross Profit / Cost of Goods Sold) * 100

• (Gross Profit / Revenue) * 100

• (Gross Profit / Net Sales) * 100

• (Net Profit / Revenue) * 100

Calculate the gross profit margin if the revenue is $1000 and the cost of goods sold is $600.

• 60%

• 40%

• 50%

• 30%

What is the formula to calculate net profit margin?

• Net Profit Margin = (Net Profit / Total Expenses) * 100

• Net Profit Margin = (Net Profit / Total Revenue) * 100

• Net Profit Margin = (Net Profit + Total Revenue) * 100

• Net Profit Margin = (Net Profit / Total Revenue)

Calculate the net profit margin if the net profit is $200 and the revenue is $1000.

• 50%

• 10%

• 30%

• 20%

What is the formula to calculate return on capital employed (ROCE)?

• Net Profit / Capital Employed * 100

• Revenue / Capital Employed * 100

• Operating Profit / Capital Employed

• Operating Profit / Capital Employed * 100

Calculate the ROCE if the net profit is $500, capital employed is $2000, and revenue is $3000.

• 20

• 25

• 15

• 10

What is the formula to calculate current ratio?

• Current Assets / Current Liabilities

• Current Assets * Current Liabilities

• Current Assets - Current Liabilities

• Current Assets + Current Liabilities

Calculate the current ratio if the current assets are $5000 and the current liabilities are $2000.

• 3.2

• 1.5

• 2.5

• 0.4