NEW
Font size
WorksheetsGross profit, Net Profit
Total questions: 15
Worksheet time: 8mins
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%
Why might the gross profit margin go down?
The enterprise has improved their profitability
Enterprise charging lower prices
Enterprise charges the same prices
Enterprise charging higher prices
Why might the gross profit margin go up?
Cost of sales have decreased
Cost of sales have increased
Operating (other) expenses have increased
Operating (other) expenses have decreased
What does the net profit margin tell us?
How many staff are employed
What type of ownership the business has
How efficiently a business is run
The cash inflows and outflows
Gross profit is the difference between ____
Sales revenue and total costs
Sales revenue and cost of sales
Sales revenue and other expenses
Sales revenue and fixed costs
A fall in the gross profit margin might suggest ____
that suppliers are charging higher prices
that suppliers are charging lower prices
that the business is charging customers higher prices
that operating (other) expenses have increased
