Using the information in Extract E, calculate the operating profit margin for Sports Direct in 2018 - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2

Next, we need to calculate the operating profit. The formula for operating profit is:

$\text{Operating Profit} = \text{Gross Profit} - \text{Selling, Distribution and Administrative Expenses}$

Substituting the values:

$\text{Operating Profit} = 1335.1 - 1156.1 = 179.0$ \text{ (in £million)}

Now, to find the operating profit margin, we use the formula:

$\text{Operating Profit Margin} = \left( \frac{\text{Operating Profit}}{\text{Revenue}} \right) \times 100$

Substituting the known values:

$\text{Operating Profit Margin} = \left( \frac{179.0}{3359.5} \right) \times 100 \approx 5.33\%$

Thus, the operating profit margin for Sports Direct in 2018 is approximately 5.33% when rounded to two decimal places.