Calculate the gross profit ratio for 2011 - HSC - SSCE Business Studies - Question 22 - 2011 - Paper 1
Question 22
Calculate the gross profit ratio for 2011. Show all working.
Given the revenue statement for Kendall's Café:
Sales (2011): $800,000
Cost of Goods Sold (2011): $200... show full transcript
Worked Solution & Example Answer:Calculate the gross profit ratio for 2011 - HSC - SSCE Business Studies - Question 22 - 2011 - Paper 1
Step 1
Calculate the gross profit for 2011
96%
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Answer
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 800 - 200 = 600
Step 2
Calculate the gross profit ratio
99%
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Answer
Gross Profit Ratio = (Gross Profit / Sales) x 100%
Gross Profit Ratio = (600 / 800) x 100% = 75%
