Page 446 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 16

Test your understanding answers

Test your understanding 1

J Y

Gross margin 140 / 300 × 100 = 46.7% 320 / 550 × 100 = 58.2%

ROCE 65 / 500 × 100 = 13.0% 128 / 1,300 × 100 = 9.8%

Return on sales 65 / 300 × 100 = 21.7% 128 / 550 × 100 = 23.3%

J Y
$000 $000

Sales revenue 300 550

Direct costs of production (160) (230)

Gross profit 140 320

Indirect costs of production (50) (160)

Non-production costs (25) (32)

Operating profit 65 128

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