AQA GCSE Business · 8132
Paper 1, Paper 2
- Revise: Financial Statements
The percentage of revenue remaining as gross profit: .
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GCSE Business · key term
Gross profit expressed as a percentage of sales revenue: .
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
The percentage of revenue remaining as gross profit: .
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Gross profit expressed as a percentage of sales revenue.
Specification 2.4.1 · Paper 2
Gross profit expressed as a percentage of sales revenue, showing the proportion of sales revenue remaining after cost of sales.
Revise: Business CalculationsA higher gross profit margin means the business retains a larger proportion of revenue at this stage. It might improve by finding a cheaper supplier or charging a higher selling price without an equivalent increase in direct costs. Conversely, higher supplier prices or discounting can reduce the margin, if other factors remain unchanged.
Paper 2
Gross profit expressed as a percentage of total revenue: .
Revise: Profitability RatiosGross profit has increased, but gross profit margin has fallen. The shop now keeps only 35p rather than 40p as gross profit per £1 of revenue. Cost of sales has taken a larger share of revenue.