If Turnover is 500,000 and Net Profit is 75,000, Net Profit Margin is?

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

If Turnover is 500,000 and Net Profit is 75,000, Net Profit Margin is?

Explanation:
Net profit margin shows how much of turnover is kept as profit after all costs. It’s calculated by dividing net profit by turnover and multiplying by 100. 75,000 ÷ 500,000 = 0.15, and 0.15 × 100 = 15%. So the net profit margin is 15%. To check the other options: 7.5% would correspond to a net profit of 37,500; 25% would be 125,000; 12% would be 60,000. None of these match the given net profit of 75,000.

Net profit margin shows how much of turnover is kept as profit after all costs. It’s calculated by dividing net profit by turnover and multiplying by 100.

75,000 ÷ 500,000 = 0.15, and 0.15 × 100 = 15%. So the net profit margin is 15%.

To check the other options: 7.5% would correspond to a net profit of 37,500; 25% would be 125,000; 12% would be 60,000. None of these match the given net profit of 75,000.

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