WAEC - Accounts Principles Of Accounts (2010 - No. 17)
Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales what is the gross profit?
net profit = 0.1 x 12500 = 1250
gross profit = sales - cogs
net profit = gross profit - expenses
1250 + 2500
D11,250
D8,750
D3,750
D1,250
Explanation
net profit = 0.1 x 12500 = 1250
net profit = gross profit - expenses
Therefore; net profit + expenses = gross profit
1250 + 2500 = 3750
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