Trev's revenue for 20X6 was £346 410, and for 20X7 was £366 270.His gross profit margin in 20X6 was 26.2%, improving to 26.3% in 20X7.In 20X8 he expects revenue to increase by the same percentage as between 20X6 and 20X7.Gross profit margin is likely to remain static at 26.3%. What is Trev's expected gross profit in 20X8 (to the nearest £)?

Question

Quizplus · Accepted Answer

The percentage increase in revenue from 20X6 to 20X7 is ((£366,270 - £346,410) / £346,410) * 100 = 5.73%. Applying this increase to 20X7's revenue, the expected revenue for 20X8 is £366,270 * 1.0573 = £387,272. Gross profit for 20X8 is 26.3% of £387,272, which is £101,852.

Trev's Revenue for 20X6 Was £346 410, and for 20X7