Stretch & Go! is a fully licensed stretched limousine business, with a leading reputation in its
local area. Following an increase in fuel prices, cost of sales has risen and the owner is keen
to see the effect of this change on this year's gross and operating profit. The following
financial information has been provided for this year; sales revenue equals £88,450, cost of
sales was £48,740 last year, but has increased by 5% this year, and expenses totalled
Activity: Calculate:
a) the gross profit this year
b) the net profit this year