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%.