IB Business Management HL 3.5.1 Profitability ratios Question Bank

Practise IB Business Management SL/HL 3.5.1 by applying profitability ratios concepts to exam-style questions.

Exam points

identify the relevant model, concept or evidence
apply the correct subject framework to the question
evaluate the result using clear evidence and subject terminology

[Maximum number: 1]

Enjuice

Enjuice produces canned juices. The market for canned juices is very competitive. Each can is sold at $ 8. Enjuice's profit margins are falling. The marketing manager has conducted primary market research and suggested increasing advertising to increase sales. In 2018 Enjuice sold 360000 cans.

$Table 1: Selected financial information for 2018 (all figures in \$000s)$

Table 1: Selected financial information for 2018 (all figures in \$000s)

Using the information provided above and in Table 1:

calculate the gross profit margin (no working required).

$\underline{440} \times 100=15.27 \%$
2880

Accept 15.2\% or 15.3\%.
Award [1] for the correct answer (working not required). Candidates must show a percentage sign.
Do not accept 15\%, or the formulae.
Allow candidate OFR.

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3.5.1—Profitability ratios question 1