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WorksheetsProfit and Profit Margins - Market Day
Total questions: 13
Worksheet time: 36mins
Businesses calculate breakeven in units so they know
how much profit they will earn after they break even
which products they should purchase for resale
which costs are variable and which are fixed
how many products they must sell to break even
How much Gross Profit was made?
Sell 10 Mangoes for $2.00 each. They cost the company $0.50 each to buy
15.00
2.00
10.00
5.00
How much Gross Profit was made per unit?
Sell Lemonade for 2.00 a cup. It costs 1.20 a cup to make.
2.00
1.20
0.80
3.20
Selling price per unit MINUS variable cost per unit
Net Profit
Break even Point
Gross Profit
Sales Prices
At a theatre the owner charges $25 per ticket. She has a fixed cost of operating the theatre of $18,500. Each customer leaves with a free dessert that cost the owner $5 per dessert. When will the owner break even?
Break even = Fixed cost/Gross Profit
925 customers
740 customers
18500 customers
3700 customers
At a local ballpark a team charges $10 per ticket. The team must pay its players $4000. It costs the owners $6 for each ticket they sell because they give away a free hat with each ticket.
How many tickets must be sold to break even.
Break-even = Fixed Cost/Gross Profit
1000 tickets
10,000 tickets
600 tickets
660 tickets
How do you calculate revenue?
unit sold x price
price x cost
cost + sales
sales - total price
How do you calculate Gross Profit Margin?
gross profit / revenue x 100
gross profit x revenue / 100
gross profit / sales (revenue) / 100
gross profit x revenue x 100
How do you calculate Net Profit Margin?
net profit / revenue x 100
net profit x revenue / 100
net profit / revenue / 100
net profit x revenue x 100
Gross Profit is the fraction of the $ that doesn't go directly towards making a ........
profit
product
revenue
sales
Gross Profit Margin should be greater than Net Profit Margin?
True
False
Sensational Sweets Ltd had gross profit of $150,000 and revenue of $200,000. What was the gross profit margin?
55%
65%
75%
85%
Sensational Sweets Ltd had gross profits of $150,000 and revenue of $200,000. How much of each dollar was spent on the product?
15 cents
25 cents
35 cents
45 cents
