The gross profit margin earned on an item that cost £500 and is sold for £625 is?
Select ONE answer:
- 20%
- 25%
- 33 1/3%
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct – Gross Profit Margin = Gross Profit as a percentage of selling price = (£625 — £500) / £625 = 20%.
- Not correct
- Not correct
- Not correct
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