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Using the information in Table 2, calculate Greggs’ gross profit - Edexcel - GCSE Business - Question 5 - 2022 - Paper 1
Question 5
Using the information in Table 2, calculate Greggs’ gross profit. Using the information in Table 2, calculate to 2 decimal places, Greggs’ net profit margin. A... show full transcript
Worked Solution & Example Answer:Using the information in Table 2, calculate Greggs’ gross profit - Edexcel - GCSE Business - Question 5 - 2022 - Paper 1
Step 1
Using the information in Table 2, calculate Greggs’ gross profit.
Answer
To calculate Greggs’ gross profit, we need to use the formula:
Assuming the provided values from Table 2 are:
- Sales Revenue: £1,029,347,000
- Cost of Goods Sold: £373,487,000
Substituting the values into the equation:
Thus, Greggs’ gross profit is £655,860,000.
Step 2
Using the information in Table 2, calculate to 2 decimal places, Greggs’ net profit margin.
Answer
The net profit margin is calculated using the formula:
ext{Net Profit Margin} = rac{ ext{Net Profit}}{ ext{Sales Revenue}} imes 100From the information, let’s assume:
- Net Profit: £82,568,000
- Sales Revenue: £1,029,347,000
Substituting these values gives:
ext{Net Profit Margin} = rac{£82,568,000}{£1,029,347,000} imes 100 = 8.02 ext{%}Therefore, Greggs’ net profit margin is 8.02%.
Step 3
Analyse the impact on Greggs from improving its logistics.
Answer
Improving logistics can have a significant impact on Greggs in various ways:
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Cost Reduction: Enhanced logistics can lead to reduced transportation and warehousing costs, thereby decreasing overall operational expenses. This could improve profitability.
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Increased Efficiency: Streamlined logistics processes can result in faster delivery times and better inventory management, keeping production on track and minimizing stockouts.
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Better Customer Satisfaction: Efficient logistics ensures that products reach customers on time, which can enhance customer satisfaction and loyalty.
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Scalability: Improved logistics can provide the ability to scale operations more effectively as demand rises, allowing Greggs to seize market opportunities.
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Sustainability: Optimized logistics can also contribute to sustainability by reducing waste and energy usage, aligning with consumer preferences for sustainable practices.
In conclusion, focusing on logistics not only enhances operational efficiency but can also lead to improved financial performance and customer relationships for Greggs.