Offei, a petty trader sold goods for GH¢36,240. The gross profit being 33\(\frac{1}{3}\)% on cost. What was the cost price?

To find the cost price of the goods, we need to use the formula: Cost price = Selling price / (1 + Gross profit percentage) In this case, the selling price is GH¢36,240, and the gross profit percentage is 33\(\frac{1}{3}\)%, or 1/3 in decimal form. Therefore, we have: Cost price = GH¢36,240 / (1 + 1/3) Cost price = GH¢36,240 / 4/3 Cost price = GH¢27,180 So, the cost price of the goods is GH¢27,180. To explain the calculation, the gross profit percentage represents the profit as a percentage of the cost price. In this case, the profit is 33\(\frac{1}{3}\)% of the cost price. To find the cost price, we need to reverse the calculation by dividing the selling price by 1 plus the gross profit percentage in decimal form. This gives us the amount that represents the cost price plus the profit, so we then subtract the profit to get the cost price. In this example, we divide GH¢36,240 by 4/3 to get the total cost price plus profit, which is GH¢48,320. We then subtract the profit of GH¢12,080 (1/3 of GH¢36,240) to get the cost price of GH¢27,180.