Money calculations Flashcards
1
Q
What are 2 ways to improve gross profit margin?
A
-Increasing sales revenue
-Lowering cost of sales
2
Q
How can you increase sales revenue?
A
-Lowering selling price
-Increase selling price
-Increasing awareness of product
3
Q
How can you lower cost of sales?
A
-Try cut down on price paid to suppliers through negotiation
-Changing suppliers if another supplier can offer cheaper prices
-Review existing products to see if they could be made more cheaply
4
Q
What is gross profit margin?
A
Percentage of sales revenue that is gross profit
5
Q
A business could improve net profit margin by lowering expenses!
What are some examples?
A
-Delayer organisational struture
-Freeze recruitment
-Move to cheaper location
