WAEC - Accounts Principles Of Accounts (2024 - No. 24)

Use the following information to answer this question.

 
The margin for a business is 2/5 and the cost of sales is $ 120,000.  


The mark-up for the business is 

4/5
3/5
2/3
1/5 

Explanation

If margin = \(\frac{2}{3}\) = \(\frac{\text{profit}}{\text{sales}}\)

Cost = sales - profit

Mark up = \(\frac{\text{profit}}{\text{cost}}\) = \(\frac{2}{5.2}\) = \(\frac{2}{3}\)

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