Revision Qs (Calculations 21.1.1)

NOF imports dried fruit from France. A kilogram (kg) costs €12.84.
The exchange rate is £1 (Pound sterling) = €1.16 (Euro).

Which one of the following would NOF pay for 1kg of dried fruit in pounds sterling?

• £1.16

• £11.07

• £12.84

• £14.00

NOF buys honey from a local farm for £1.60 a jar and sells it to customers for £3.60.

What is the percentage markup on a jar of honey?

• 1.6%

• 2%

• 125%

• 250%

Calculate, to two decimal places, the operating profit margin using the attached extract.

You are advised to keep evidence of your working in your note book.

You must memorise the break-even formula. It will not be given on the formula sheet.

NOF is looking to expand its product range by making and selling tubs of ice cream.

A tub of ice cream will sell for £2.50. Variable costs will be £1.10 per tub of ice cream with fixed costs of £77 per day.

Calculate the number of tubs of ice cream NOF will have to sell each day to break-even.

You are advised to keep evidence of your working in your note book.

Calculate, to 2 decimal places, the current ratio for 2020 using the attached extract.

Hint: Current ratio = current assets / current liabilities

You are advised to keep evidence of your working in your note book.