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1 The table below is an extract from the accounts of Triton Canning Ltd, a food canning and processing business. The company sells its products to the three main supermarket groups in the country. 2018 ($m) 2017 ($m) Gross profit 300 285 Net profit 120 140 Revenue 3000 2500 Capital employed 1000 900 a Define ‘capital employed’. [2] b Identify two possible reasons why revenue has increased. [2] c Outline two possible reasons why gross profit has increased. [4] d Explain two ways in which Triton Canning’s management could increase net profit. [6] e Do you think the management of Triton Canning should be satisfied with the profitability of the company? Calculate the return on capital employed ratio for both years to support your answer. [6
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