If a firm's turnover is N15,000 and the cost of goods sold is N 10,000 What is the percentage of gross profit on sales?
Answer Details
To calculate the percentage of gross profit on sales, we need to first find the gross profit.
Gross profit is the difference between the turnover and the cost of goods sold. Therefore,
Gross Profit = Turnover - Cost of goods sold
Gross Profit = N15,000 - N10,000
Gross Profit = N5,000
Now, to calculate the percentage of gross profit on sales, we divide the gross profit by the turnover and multiply by 100. Therefore,
Percentage of Gross Profit on Sales = (Gross Profit / Turnover) x 100
Percentage of Gross Profit on Sales = (N5,000 / N15,000) x 100
Percentage of Gross Profit on Sales = 33.3%
Therefore, the correct answer is the second option, 33.3%.