Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 9 - No. 37)

If a company has a mark-up of 25% on the cost of goods, and the cost of goods sold is $10,000, what is the sales revenue?

$2,500

$7,500

$10,000

$12,500

Sales revenue = cost of goods sold + mark-up = $10,000 + (25% of $10,000) = $12,500.