The revenue figure for Yates Clothing Co Limited was £772 600 for the 20X6 financial year.Between 20X6 and 20X7 revenue increased by 5%, and by 7.2% between 20X7 and 20X8.Gross profit in 20X8 was 24.3% of revenue. What was the gross profit figure for the company in 20X8 (to the nearest £)?

Question

Quizplus · Accepted Answer

Firstly, we need to calculate the revenue figures for 20X7 and 20X8 using the given percentage increases:
Revenue in 20X7 = £772,600 x 1.05 = £811,230
Revenue in 20X8 = £811,230 x 1.072 = £869,335.16
Next, we can calculate the gross profit figure for 20X8 using the gross profit margin percentage of 24.3%:
Gross profit = 24.3% x £869,335.16 ≈ £211,321.73
Rounding to the nearest £ gives us the answer of £211,322, which corresponds to choice B.

The Revenue Figure for Yates Clothing Co Limited Was £772