Gross & Net profit practice

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

Revenue = £50,000

Cost of sales = £25,000

Other expenses = £5,000

What is the total net profit?

• £10,000

• £25,000

• £20,000

• £30,000

What is the net profit margin formula?

• Net profit / other expenses x 100

• Net profit / Cost of sales x 100

• Gross profit / Total revenue x 100

• Net profit / Total revenue x 100

What is meant by the term net profit?

• It is what is left over after gross profits have been deducted

• It is what is left over after all costs have been deducted

• It is what is left over after cost of sales have been deducted

• It is what is left over after operating costs have been deducted

What does the net profit margin tell us?

• How effectively a business turns operating expenses into profits

• How effectively a business turns cost of sales into profits

• How effectively a business turns costs into profits

• How effectively a business turns sales into profits

Net profit = £100,000

Cost of sales = £50,000

Total sales revenue = £300,000

What is the net profit margin?

• 20%

• 33.3%

• 66.6%

• 16.7%