A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
Answer Details
The mark-up in this scenario is ₦6,174.
When a company sells goods to its branch, it usually does so at a price that is higher than the cost price, to make a profit. In this case, the invoiced price of the goods sent to the branch is ₦30,870, which includes a markup of 25% on the cost price.
To find the cost price, we can use the following formula:
Cost price = Invoiced price / (1 + Markup percentage)
Plugging in the values, we get:
Cost price = ₦30,870 / (1 + 25%) = ₦24,696
Now, to find the markup, we can use the following formula:
Markup = Invoiced price - Cost price
Plugging in the values, we get:
Markup = ₦30,870 - ₦24,696 = ₦6,174
Therefore, the mark-up in this scenario is ₦6,174. This represents the amount that the company has added to the cost price of the goods to arrive at the invoiced price that it charged to its branch.