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Delizio has also requested additional information on how his business is performing against similar Delicatessen businesses in Australia.

Using the Australian Tax Offices Small Business benchmark

Using the available data

• Write down the Financial Year dates provided. - 2020-21 benchmarks
• Find the benchmark figures for a Delicatessen. -
• Note down the following figures for a business with a turnover equivalent to Delizios:
• Average Cost of Sales -
• Average total expenses -

a) Gross Profit ratio

i. Calculate the benchmark Gross Profit ratio using the calculation: 100% Average Cost of Sales

ii. Compare the benchmark Gross Profit ratio calculated in i) to Delizios Gross Profit ratio previously calculated on your spreadsheet. Comment on Delizios performance compared to the industry standard (benchmark Gross Profit ratio).

b) Net Profit ratio

i. Calculate the Benchmark Net Profit ratio using the calculation: 100% Average total expense

ii. Compare the benchmark Net Profit ratio calculated in i) to Delizios Net Profit ratio previously calculated on your spreadsheet. Comment on Delizios performance compared to the industry standard (benchmark Net Profit ratio).

2020-21 benchmarks Key benchmarks for 2020-21 Other benchmarks Not all expenses are reported by every business. Only use this information as a guide if it applies to your business

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