CAIE IGCSE Business Studies 7.3.5 profit margin
Practise profit-margin questions by substituting profit and revenue into the formula and giving the final percentage clearly.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Use profit divided by revenue multiplied by 100 to calculate profit margin.
- Show working such as 72÷480×100 or 400000÷1000000×100 before the answer.
- Present the result as a percentage, such as 15% or 40%, not just a decimal.
7.3.5—Profit margin question 1
TJK manufactures candles. Contributing to sustainable development is important to TJK. The business uses batch production in its factory in country X. The target market for TJK's products is females between 20 and 50 years of age. The Managing Director is reviewing TJK's financial data. An extract is shown in Table 3.1. He is also considering the benefits to a business of becoming a multinational company.
Table 3.1
Calculate TJK's profit margin. Show your working.
Working:
Final answer:
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