0452.6.1.01 — Gross margin: past paper questions
Real questions on 0452.6.1.01 — gross margin
The newest 20 of 30 written questions. Open one to see it on the real paper.
- 0452/21 · May/June 2026 · Q5a[11]
Complete the following table. ratio workings answer rate of inventory turnover (times) (to two decimal places) trade receivables turnover (days) (round up to next whole day) trade payables turnover (days) (round up to next whole day) current ratio at 31 March 2026 (to two decimal places) liquid (acid test) ratio at 31...
See it on the paper → - 0452/22 · May/June 2026 · Q2c(i)[2]
gross margin
See it on the paper → - 0452/22 · February/March 2026 · Q3c[2]
Molly is considering producing her own goods instead of purchasing goods from suppliers. She would convert the part of her premises which she currently rents out into a factory. REQUIRED (c) Calculate Molly’s gross margin for the year ended 30 September 2025. State your answer to two decimal places.
See it on the paper → - 0452/22 · February/March 2026 · Q3d[5]
Advise Molly whether or not to use this part of her premises to produce her own goods. Justify your answer. Turn over
See it on the paper → - 0452/22 · October/November 2025 · Q4a[10]
Complete the following table by indicating whether the ratio has improved or deteriorated at the end of year 2, and give two reasons which may have caused the change. The Return on capital employed (ROCE) has been completed as an example. Ratio Return on capital employed (ROCE) Improved or deteriorated Deteriorated Pos...
See it on the paper → - 0452/23 · October/November 2025 · Q3b(i)[2]
Suggest two ways that Rushil might improve his return on capital employed (ROCE).
See it on the paper → - 0452/21 · May/June 2025 · Q2f(i)[1]
Mo’s gross margin is higher than Barry’s
See it on the paper → - 0452/21 · May/June 2025 · Q2f(ii)[1]
Mo’s expenses are lower than Barry’s.
See it on the paper → - 0452/22 · February/March 2025 · Q4a[11]
Complete the following table. Ratio Workings Answer (to two decimal places) Gross margin Profit margin Return on capital employed (ROCE) Rate of inventory turnover (times) Trade receivables turnover (days) Liquid (acid test) ratio Raj’s profit margin has decreased over the past few years. It has taken Raj longer to col...
See it on the paper → - 0452/22 · May/June 2024 · Q5a[11]
Complete the following table. ratio working answer Gross margin (to 2 decimal places) Profit margin (to 2 decimal places) Rate of inventory turnover (times) (to 2 decimal places) Trade receivables turnover days (round up to next whole day) Liquid (acid test) ratio (to 2 decimal places) Ajay has been trading for 3 years...
See it on the paper → - 0452/22 · May/June 2024 · Q5b(i)[1]
Suggest one reason why Ajay’s gross margin has increased.
See it on the paper → - 0452/22 · May/June 2024 · Q5b(ii)[1]
State one reason why Ajay’s customers might be interested in his financial statements. , Ajay is concerned about the levels of his inventory and trade receivables. He is considering reducing his selling price. REQUIRED
See it on the paper → - 0452/22 · May/June 2024 · Q5c[5]
Advise Ajay whether or not he should reduce his selling price. Justify your answer by providing advantages and disadvantages of reducing his selling price. Although Ajay’s gross margin has increased, his profit margin has fallen for each of the last two years. Sales revenue is Ajay’s only income. REQUIRED
See it on the paper → - 0452/21 · October/November 2023 · Q2b[4]
Calculate Hilary’s gross profit for the year ended 31 July 2023.
See it on the paper → - 0452/22 · October/November 2023 · Q5a[11]
Complete the following table.
See it on the paper → - 0452/22 · October/November 2023 · Q5b[3]
Explain why Nala should not be entirely pleased with her results.
See it on the paper → - 0452/23 · May/June 2023 · Q5d[2]
Calculate Amadi’s gross margin, correct to two decimal places. Gross margin workings answer Amadi’s main competitor is Hector who owns his own business premises. Amadi and Hector have similar gross margins but Hector has a slightly higher profit margin. REQUIRED
See it on the paper → - 0452/22 · February/March 2023 · Q4a[9]
Complete the following tables. Gross margin Working Answer (correct to two decimal places) Profit margin Working Answer (correct to two decimal places) Rate of inventory turnover Working Answer (correct to two decimal places) Liquid (acid test) ratio Working Answer (correct to two decimal places) Adya’s purchases price...
See it on the paper → - 0452/22 · February/March 2023 · Q4b(i)[2]
gross margin
See it on the paper → - 0452/22 · February/March 2023 · Q4c[5]
Advise Adya whether she should reduce her selling price. Justify your answer. One of the limitations of financial statements is that there is a gap between the end of the financial year and the preparation of the financial statements. REQUIRED
See it on the paper →
What examiners said
Comprehensive responses • Candidates applied the correct formula to calculate the gross margin. • The instruction to state the answer to two decimal places was followed. • A percentage sign was correctly displayed after the answer. Limited responses • Candidates often incorrectly used the gross sales rather than the net sales for the denominator. • Irrelevant items such as average inventory were...
— Examiner report, February/March 2026, 0452/22 Q3(c) (Cambridge)
Comprehensive responses • The advantages and disadvantages to the trader of manufacturing goods rather than purchasing them were discussed in a logical manner. • There was a clear statement advising the trader on what action he should take. Limited responses • Candidates made generic statements and did not relate them to the given scenario. For example, ‘costs will increase’ is too vague. • Many...
— Examiner report, February/March 2026, 0452/22 Q3(d) (Cambridge)
Candidates had to suggest one reason why the gross margin of one business was higher than that of another business. Many correctly stated that was because the selling price was higher. Incorrect responses included higher sales and higher gross profit. As these were farming businesses, ‘lower purchase price’ was not an appropriate answer.
— Examiner report, May/June 2025, 0452/21 Q2(f)(i) (Cambridge)
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