Business Studies · Oct / Nov 2020 · Paper 11 · Question 3

Elton is a sole trader. He sells specialist clothing and equipment for sports, including baseball and hockey. It is a niche market. Elton started his business 5 years ago and it has remained small. A wide range of inventory is important. Elton has been looking at the financial performance of his business. The profit margin for 2018 was 35%. An extract of the accounts is shown in Table 3.1. Table 3.1 Revenue and cost information for Elton’s business for 2018 and 2019 ($) 2018 2019 Revenue ($) 24000 25000 Cost of sales ($) 7200 Y Gross profit ($) 16800 18000 Expenses ($) 8400 10000 Profit ($) X 8000

Read automatically from the paper; the printed page above is exact.