If a firm's turnover is N15,000 and the cost of goods sold is N 10,000 What is th...
QuestionIf 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?
The correct answer is B.
This question is asking us to calculate the percentage of gross profit on sales for a firm.
To do this, we need to understand what gross profit is. Gross profit is the difference between the cost of goods sold (COGS) and the total revenue or turnover of a firm.
In this question, the turnover is given as N15,000 and the cost of goods sold is given as N10,000.
To find the gross profit, we subtract the COGS from the turnover: N15,000 - N10,000 = N5,000.
Next, we need to calculate the percentage of this gross profit on sales. To do this, we divide the gross profit by the turnover and multiply by 100.
In this case, the gross profit is N5,000 and the turnover is N15,000.
So, (N5,000 / N15,000) * 100 = 33.3%.
Therefore, the correct answer is Option B: 33.3%. This means that the firm's gross profit is 33.3% of its sales.
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