JAMB - Commerce (1998 - No. 16)

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?
23.3%
33.3%
50.0%
66.6%

Explanation

Gross Profit =Turnover − Cost of Goods Sold

Turnover = N15,000, Cost of Goods Sold = N10,000

Gross Profit = Turnover − Cost of Goods Sold = N(15,000 - 10,000) = N5000

Percentage of Gross Profit = \(\frac{\text{Gross profit}}{\text{Turnover}}\) x 100

  = \(\frac{5000}{15000}\) x 100 = 33.33%

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