IB Business Management HL 3.5.1 Profitability Ratios Topic Practice

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Study 3.5.1—Profitability ratios conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

Question 1

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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).

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