Paper 1 · Financial calculations and technology impact

Using the Charm Packaging Ltd case study figures (combining the existing product and the proposed new product), calculate the company's expected net profit for 2019, in $ millions.

Model answer

Also accepted: $8m, 8m, 8 million, $8 million

Explanation: Combined sales of

32m (20+12) less combined cost of goods sold of

19m (13+6) gives a gross profit of

13m; deducting combined expenses of

5m (3+2) leaves a net profit of $8m for 2019.

Derived from ZIMSEC Business_studies Paper 1, June 2019, Q13

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