Offei, a petty trader sold goods for GH¢36,240. The gross profit being 33\(\frac{1}{3}\)% on cost. What was the cost price?
- GH¢45,300
- GH¢28,992
-
GH¢27,180
- GH¢24,160
The correct answer is: C
Explanation
Cost price = total sales - profit
To begin, we will first have to convert the gross profit to margin. Hence we have;
33\(\frac{1}{3} = \frac{100}{3} \times \frac{1}{100}\)
Cross multiply
\(\frac{1}{3} + 1 = \frac{1}{4}\)
\(\frac{1}{4}\) x 36,240 = 9060
Cost price = 36,240 - 9060 = 27,180