Use the following information to answer this question The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30t...
Use the following information to answer this question
The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19x8
₦
₦
Sales
Less: cost of goods sold
233,000
170,000
63,000
less: Overhead Expenses
Admin expenses
Selling expenses
Other overhead expenses
16,800
15,000
6,200
Net profit
25,000
What is the Gross Profit on percentage of sale?
Answer Details
To calculate the Gross Profit on percentage of sale, we need to use the following formula:
Gross Profit Percentage = (Gross Profit / Sales) x 100
First, we need to calculate the Gross Profit, which is the difference between the Sales and Cost of Goods Sold:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 233,000 - 170,000
Gross Profit = 63,000
Next, we can calculate the Gross Profit Percentage using the formula above:
Gross Profit Percentage = (Gross Profit / Sales) x 100
Gross Profit Percentage = (63,000 / 233,000) x 100
Gross Profit Percentage = 0.2701 x 100
Gross Profit Percentage = 27.01%
Therefore, the Gross Profit on percentage of sale is 27.01%, which means that for every ₦1 of sales, Wazobi Ventures earns a Gross Profit of ₦0.27.
The closest option to this answer is 27.0%.