WAEC - Accounts Principles Of Accounts (2024 - No. 25)
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 sales value for the business is
$216,000.
$204,000.
$ 200,000.
$ 192,000.
Explanation
\(\frac{2}{3}\) = \(\frac{\text{profit}}{\text{cost}}\) = \(\frac{\text{profit}}{120,000}\)
Profit = \(\frac{2 \times 120,000}{3}\)
= #80,000
Sales = cost + profit
= #120,000 + #80,000
= # 200,000
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