Q 4 December 2013

This topic has 5 replies, 3 voices, and was last updated 9 years ago by John Moffat.

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May 25, 2016 at 2:28 pm #317052
paula28
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Hi John,

I would like to ask you a question reg Q 4 Dec 2013. I would like to know how to calculate gross profit margin and net profit margin between two years.

Thanks,

Paula
May 25, 2016 at 3:20 pm #317072
John Moffat
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The gross profit margin = gross profit/revenue x 100%

So for the whole company for 2013, it is (21876+28574) / (38845+44065) = 61%

The net profit margin = operating profit/revenue x 100%

So for Division S in 2013 it is 4330/38845 = 11%
May 25, 2016 at 3:27 pm #317076
paula28
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Thank you very much! 🙂
May 25, 2016 at 3:53 pm #317083
John Moffat
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You are welcome 🙂
May 27, 2016 at 7:32 pm #317567
1331
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Hello John,

I respectfully think that you got it wrong for the gross profit margin. The gross profit margin should be calculated individually for 2012 and 2013 and separately for divisions S and C. Doing so will produce the answers in the ACCA answer paper. I do not see why you combined the figures for divisions S and C instead of keeping them separate.
May 29, 2016 at 6:00 pm #317967
John Moffat
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Yes she did!

I suggest respectfully that you read the answer properly 🙂

(Read the first sentence under ‘gross profit margin’ in the answer!)
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