Answers to business test questions: -

 

1.

If your normal margin is 40%, there is a profit improvement of £5,000 in every £100,000 of sales.

If your normal margin is 50%, there is a profit improvement of £2,000 in every £100,000 of sales.

If your normal margin is 60%, there is a profit decrease of £1,000 in every £100,000 of sales.

 

2.

At 40% margin, 10% less profit.

At 50% margin, 4% less profit.

At 60% margin, no change.

 

3.

Depending on current number of customer visits and margin. As an example, a pub taking £3,000 per week from 300 customers each visiting the pub twice per week, increases sales by £15,000 per annum. At 55% margin, increase in profit is £8,250 assuming no additional operating costs.

 

4.

Up to £20,000 fine; possible jail term of 6 months too!