SolarSprout serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?4,190, sales of 225 units, and a 11% change in costs or demand. Analyse how the business should respond to Calculate gross profit margin and net profit margin ratios.

Start with the business context. Apply gross profit margin, profit, net profit margin to SolarSprout serves health-conscious consumers while cutting delivery times, then explain how the decision changes capacity utilisation, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for lenders, uses figures such as ?7,590 or 11%, and reaches a supported judgement based on the business objective.

Use the command word first. This explanation is anchored to Calculation requirements and Quantitative skills in business because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates fixed and variable costs, which helps the final judgement stay precise.