GCSE Business 2.4.1 Business Calculations

Match the following calculations

• Gross Profit - All other costs/expenses

• Net Profit Margin

• (Net profit / Revenue) * 100

• Gross Profit Margin

• (Gross profit / Revenue) * 100

• Average Rate of Return

• (Av. yearly revenue / Investment) * 100

• Net Profit

• Revenue - Cost of sales

• Gross Profit

A company has a total revenue of 500,000 and the cost of goods sold is 300,000.

Calculate the Gross Profit.

• $200,000

• $100,000

• $800,000

• $700,000

If a business has a Net Profit of 120,000 and total revenues of 600,000, what is the Net Profit Margin?

• 5%

• 10%

• 20%

• 25%

Calculate the Gross Profit Margin if the Gross Profit is £150,000 and the total revenue is £500,000.

• 30%

• 40%

• 50%

• 60%

An investment of £50,000 returns £70,000 after 5 years.

What is the Average Rate of Return?

• 8%

• 40%

• 20%

• 10%

A company's revenue increased from 200,000 to 250,000.

Calculate the Percentage Change.

• 20%

• 25%

• 30%

• 50%

The cost of goods sold is $250,000 and the operating expenses are $100,000. If the total revenue is $500,000, what is the Net Profit?

• $150,000

• $200,000

• $250,000

• $300,000

A business has a Gross Profit of $400,000 and operating expenses of $150,000.

Calculate the Net Profit.

• $250,000

• $550,000

• $350,000

• $450,000

If the Gross Profit Margin is 40% and the total revenue is $800,000.

What is the Gross Profit?

• $320,000

• $480,000

• $200,000

• $400,000

A company's total revenue was $1,000,000 last year and $1,200,000 this year.

Calculate the Average Yearly Revenue.

• $1,100,000

• $1,000,000

• $1,200,000

• $1,050,000