Business 0450 · IGCSE · Analysis of accounts

Analysis of accounts — practice question

(a(i))[2]

Calculate Gross profit margin in 2017.

(a(ii))[2]

Calculate Gross profit margin for 2017.

(a(iii))[4]

Explain why these profitability ratios changed from 2016 to 2017.

(b)[12]

Consider the effects of the following three changes in legal controls on AH. Which change is likely to have the biggest impact on AH? Justify your answer.\n\nHeating engineers are now required to hold health and safety qualifications.\n\nEmployees are now given protection against unfair dismissal.\n\nAn increase in the minimum wage.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Gross Profit Margin is ($500 000 - $100 000) / $500 000 = 80%

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