Day: March 27, 2020

The gross profit margin earned on an item that cost £500 and is sold for £625 is?

Select ONE answer:

1. 20%
2. 25% 
3. 33 1/3%
4. None of the above.

 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Gross Profit Margin = Gross Profit as a percentage of selling price = (£625 — £500) / £625 = 20%.
2. Not correct
3. Not correct
4. Not correct

 

 

This work is licensed under a Creative Commons Attribution 4.0 International License.