'FreshBites' is a catering business. Below is an extract from its Statement of Comprehensive Income for the year ended 31 December 2025. Revenue: £250,000 Cost of Sales: £100,000 Gross Profit: £150,000 Operating Expenses: £70,000 Profit for the year: £80,000

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. M1 for correct formula or substitution (Gross Profit / Revenue x 100).
2. A1 for correct answer (60% / 0.6).
3. Award 1 mark for identification of a way to improve profit (e.g., reduce cost of sales).
4. Award 1 mark for explanation of how this improves profit (e.g., by finding cheaper suppliers for ingredients).
5. Award 1 mark for development/link to FreshBites (e.g., this will increase the gross profit, and if operating expenses remain constant, the profit for the year will rise for the catering business).