JAMB - Accounts Principles Of Accounts (2019 - No. 65)
A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
₦20,000
₦6,000
₦6,174
₦10,000
Explanation
Convert mark-up to margin
\(\frac{25}{100}={1}{4}={1}{1+4}={1}{5}\)
profit = \(\frac{1}{5}\) x 30,870 = 6,174
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