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What is the Gross Profit on percentage of sale?

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

What is the Gross Profit on percentage of sale?

  • A.
    2.7%
  • B.
    0.27%
  • C.
    27.0%
  • D.
    29.8%
Correct Answer: Option C
Explanation

Gross profit % on sales = gross profit ÷ sales x 100

= (frac{63,000}{233,000}) x 100 =27%