TJK manufactures candles．Contributing to sustainable development is important to TJK．The business uses batch production in its factory in country X ．The target market for TJK＇s products is females between 20 and 50 years of age．The Managing Director is reviewing TJK＇s financial data． An extract is shown in Table 3．1．He is also considering the benefits to a business of becoming a multinational company．（b）Calculate TJK＇s profit margin．Show your working． Working： Final answer：［2］

Business

IGCSE&ALevel

CAIE

Exam No：0450_m25_qp_12 Year：2025 Question No：3(b)

Answer:

Award 2 marks for the correct calculation.
Award 1 mark for correct method but wrong answer.
Correct answer: 40\% [2]
Method:
- Profit / revenue \(\times 100\) [1]
- \((400000 / 1000000) \times 100\) [1]
- 40 [1]

If correct answer given and no workings shown award 2 marks.

Knowledge points:

5.5.1.1. The concept and importance of profitability

5.5.2.1. The concept and importance of liquidity

5.5.3.1. Gross profit margin

5.5.3.2. Profit margin

5.5.3.3. Return on Capital Employed

5.5.3.4. Current ratio

5.5.3.5. Acid test ratio

5.5.4.1. Needs of different users of accounts and ratio analysis

5.5.4.2. How users of accounts and ratio results might use information to help make decisions, e.g. whether to lend to or invest in the business

Answer:

Knowledge points:

Solution:

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