A professional services firm has income of 1,750,000. It incurs salaries of 1.6 million of which 60%

Question:

A professional services firm has income of £1,750,000. It incurs salaries of £1.6 million of which 60% is allocated as a cost of sales and the balance as selling and administration. The only other cost charged to cost of sales is travelling of £50,000. Other administration costs are £80,000. Calculate the gross profit and net profit.