A business operates on a mark-up of 25%. If cost of goods sold is N800,000. What is the profit?

To find the profit, we need to first calculate the selling price, which is the cost price plus the mark-up. Mark-up is calculated as a percentage of the cost price, and in this case, it is 25%. So, the mark-up on N800,000 is: 25/100 * N800,000 = N200,000 Therefore, the selling price of the goods is: N800,000 + N200,000 = N1,000,000 To calculate the profit, we need to subtract the cost of goods sold from the selling price: N1,000,000 - N800,000 = N200,000 Therefore, the profit is N200,000. The answer is option B: N200,000.