A business reports revenue of $500,000 and cost of sales of $300,000. What is the gross profit margin?

Q: How do I try a free CIE Business Studies question?

Just tap any of the four options on this page — no signup, no card, nothing to install. You'll see the correct answer and a full mark-scheme-style explanation within a second. Each visit shows a fresh randomly-picked question from the live CIE IGCSE Business Studies bank, so you can keep refreshing to try different ones before deciding whether to create a free account for daily access.

Q: Is Kramizo really free for CIE Business Studies students?

Yes — completely free. Every student gets 45 questions a day on the free plan, across any board and any subject, with no card required and no trial countdown. Kramizo's optional Pro plan removes the daily cap and adds analytics, but the free plan is genuinely free forever. We make money from the small percentage of students who choose to upgrade — not from selling data or ads.

Q: Are the Business Studies questions aligned to the CIE IGCSE syllabus?

Every question is written against the published CIE IGCSE Business Studies syllabus and reviewed for accuracy before being added to the bank. We match the command words (state, describe, explain, evaluate), mark allocations, and difficulty tier you'll see on real CIE past papers. Explanations are written in the style of official examiner mark schemes so students learn exactly what marks are being awarded for.

Question

A business reports revenue of $500,000 and cost of sales of $300,000. What is the gross profit margin?

Accepted Answer

40.0% — Gross profit = $500,000 − $300,000 = $200,000. Gross profit margin = ($200,000 ÷ $500,000) × 100 = 40.0%. Option A results from dividing gross profit by cost of sales (mark-up, not margin). Option C incorrectly uses cost of sales as the gross profit figure. Option D divides cost of sales by gross profit.

Answer

40.0%

Answer

66.7%

Answer

37.5%

Answer

60.0%

One real Business Studies question.No signup. 30 seconds.

One real Business Studies question.
No signup. 30 seconds.