Izaak owns a small fish restaurant. He employs two chefs (cooks) and three workers who serve in the restaurant. He has been trying to increase added value to improve profits. Izaak has been looking at the business accounts as shown in the Table below. He thinks fixed costs are too high. Izaak has received a number of complaints about food and service. He knows he must improve quality but cannot decide the best way to do this.
- EXTRACT 2.JPG (15.44 KiB) Viewed 185 times
16 Do you think Izaak should be pleased with the financial performance of his business? Justify your answer
using appropriate ratios. [6]
Possible KN Points:
• Gross profit increased
• Gross profit margin improved
• Profit margin down
• Profit has fallen
• Expenses up
• Revenue has not changed
• Cost of sales down