You are given the following statement of profit or loss for the year ended 31 May 2022: multicolumn(2)(|c|){ Space Itd Statement of profit or loss for the year ended 31 May 2022 Sales & 4,300 Cost of sales & (3000) Gross profit & 1,300 Distribution expense & (280) Administrative expense & (150) Depreciation expense & (180) Operating profit & 690 Interest expense & (70) Profit before taxation & 620 Taxation & (121) Profit for the year & 499 What is the company's Gross profit margin for the year? 30.2 %

Question

You are given the following statement of profit or loss for the year ended 31 May 2022: multicolumn(2)(|c|){ Space Itd Statement of profit or loss for the year ended 31 May 2022 Sales & 4,300 Cost of sales & (3000) Gross profit & 1,300 Distribution expense & (280) Administrative expense & (150) Depreciation expense & (180) Operating profit & 690 Interest expense & (70) Profit before taxation & 620 Taxation & (121) Profit for the year & 499 What is the company's Gross profit margin for the year? 30.2 %

Answer 1

Gross Profit Margin =

= 30.23, which rounds to 30.2% (round to one decimal place)

Answer 2

## Step1: Understand the requirement of the problem. The question asks for the Gross profit margin. ## Step2: Review the statement provided. Find that sales paper amount to

and that Cost of sales corresponds to

. Gross profit entails a total of

.## Step3: Recall the formula for the Gross profit margin. It is the ratio of Gross profit to Sales, then times 100% to convert it to a percentage expressed in decimal notation.### Formula : \(\displaystyle \text{{Gross profit margin (\%)}} = \frac{{\text{{Gross Profit}}}}{ \text{{Sales}}} \times 100\)

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