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Calculate the net profit on percentage of expenses.

Use the following information to answer this question
The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19×8

 
Sales
less: cost of goods sold
  233,000
170,000
    63,000
less: Overhead Expenses
Admin expenses
Selling expenses
Other overhead expenses

16,800
15,000
6,200

 

Net profit   25,000

Calculate the net profit on percentage of expenses.

  • A.
    60%
  • B.
    25%
  • C.
    13%
  • D.
    65.7%
Correct Answer: Option D
Explanation

Net profit on % of expenses =

Net profit    x 100
Expenses

= (frac{25000}{38000}) x 100

= 65.7%