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

To calculate the operating profit, we subtract the selling, distribution, and administrative expenses from the gross profit:

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

Substituting the values:

$\text{Operating Profit} = 1,335.1 - 1,156.1 = 179.0$

The operating profit margin is calculated using the formula:

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

Substituting our previously calculated values:

$\text{Operating Profit Margin} = \left( \frac{179}{3,359.5} \right) \times 100 \approx 5.33\%$

Thus, the operating profit margin for Sports Direct in 2018 is approximately 5.33%.