A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
-
A.
₦20,000 -
B.
₦6,000 -
C.
₦6,174 -
D.
₦10,000
Correct Answer: Option C
Explanation
Convert mark-up to margin
(frac{25}{100}={1}{4}={1}{1+4}={1}{5})
profit = (frac{1}{5}) x 30,870 = 6,174