If a firm has a turnover of N50 000 and the cost of goods sold is N40 000, what is the percentage of gross profit on sale?

Answer Details

The percentage of gross profit on sales can be calculated by first finding the gross profit, which is the difference between the turnover and the cost of goods sold. In this case, the gross profit is N50,000 - N40,000 = N10,000. Then, to find the percentage of gross profit on sales, divide the gross profit by the turnover and multiply by 100. So: Gross profit percentage = (Gross profit / Turnover) x 100 = (N10,000 / N50,000) x 100 = 0.2 x 100 = 20.0% Therefore, the answer is 20.0%.