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Gross Profit Analysis

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £25,000

What is the gross profit?

a)

£25,000

b)

£50,000

c)

£100,000

d)

£75,000

2.

What is the gross profit margin formula?

a)

Net profit / Total revenue x 100

b)

Gross profit / Total revenue x 100

c)

Total revenue / Gross profit x 100

d)

Cost of sales / Total revenue x 100

3.

Revenue = £80,000

Cost of sales = £30,000

Other expenses = £10,000

What is the total net profit?

a)

£70,000

b)

£65,000

c)

£50,000

d)

£40,000

4.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £40,000

What is the gross profit margin?

a)

35%

b)

50%

c)

10%

d)

85%

5.

What will impact the gross profit margin?

a)

Cost of sales increase

b)

Decrease in operating (other) expenses

c)

Sales price charged remaining the same

d)

Increase in operating (other) expenses

6.

Why might the gross profit margin go down?

a)

The enterprise has improved their profitability

b)

Enterprise charging lower prices

c)

Enterprise charges the same prices

d)

Enterprise charging higher prices

7.

Why might the gross profit margin go up?

a)

Cost of sales have decreased

b)

Cost of sales have increased

c)

Operating (other) expenses have increased

d)

Operating (other) expenses have decreased

8.

Gross profit is the difference between ____

a)

Sales revenue and total costs

b)

Sales revenue and cost of sales

c)

Sales revenue and other expenses

d)

Sales revenue and fixed costs

9.

Revenue = £200,000

Cost of sales = £160,000

Operating (other expenses) = £20,000

What is the total gross profit?

a)

£40,000

b)

£20,000

c)

£180,000

d)

£65,000

10.

Total revenue = £100,000

Cost of sales = £70,000

Operating (other) expenses = £10,000

What is the net profit margin?

a)

40%

b)

30%

c)

20%

d)

10%