(a)[2]
Explain how gross margin differs from mark-up.
(b(i))[1]
Name one cost shown in an income statement that is not included in the calculation of the expenses to revenue ratio.
(b(ii))[2]
Name two costs that could appear within the administrative expenses of a limited company.
(c(i))[3]
Calculate gross margin for the year.
(c(ii))[2]
Calculate expenses to revenue ratio for the year.
(c(iii))[2]
Calculate profit margin for the year.
(d)[1]
State the relationship between the three ratios calculated in (c).
(e)[2]
Suggest two reasons why H Limited’s gross margin could have been higher than in the previous year.