A business's gross profit margin rises from 32% to 38%, but its net profit margin falls from 9% to 6%. Which conclusion is strongest?
Cost of sales control has worsened because cost of sales increased faster than prices while operating expenses fell
Both cost of sales and operating expenses must have fallen
Cost of sales performance improved but operating expenses weakened overall profitability
The change proves that sales revenue and customer satisfaction both fell
37 exam-style questions on Edexcel GCSE Business 2.4 Making financial decisions, covering 2.4.1a Gross and net profit, 2.4.1b Margins and average rate of return, 2.4.2a Using quantitative business data, 2.4.2b Financial information: understanding performance, and 2.4.2c Financial information: making business decisions. Each one has a worked solution and a mark scheme showing where the marks go.