Use the following information to answer below
| GH⊄ | |
| Sales | 200000 |
| Purchase | 170000 |
| Opening stock | 40000 |
| Closing stock | 50000 |
The gross profit percentage is
- 10%
-
20%
- 25%
- 15%
The correct answer is: B
Explanation
Gross profit percentage = Gross profit/Sales x 100
Cost of goods sold = 40,000 + 170,000 - 50,000
= 160,000
Gross profit = 200,000 - 160,000
= 40,000
Gross profit % = 40,000/200,000 x 100
= 20%