1.

Gross profit represents:

a. the surplus from buying and selling before overheads.

b. the surplus after allowing for all expenses.
c. the difference between sales and selling and distribution expenses.
d. none of the above

2. If sales are £80,000, cost of sales is £55,000, selling expenses are £20,000 and administration expenses
are £16,000, the net result will be

a. a profit of £21,000.
a loss of £11,000.
b. a profit of £11,000.
b. a loss of £21,000.