If a firm’s turnover is N15,000 and the cost of goods sold is N 10,000 What is the percentage of gross profit on sales?
- 23.3%
-
33.3%
- 50.0%
- 66.6%
The correct answer is: B
Explanation
Gross Profit =Turnover − Cost of Goods Sold
Turnover = N15,000, Cost of Goods Sold = N10,000
Gross Profit = Turnover − Cost of Goods Sold = N(15,000 - 10,000) = N5000
Percentage of Gross Profit = \(\frac{\text{Gross profit}}{\text{Turnover}}\) x 100
= \(\frac{5000}{15000}\) x 100 = 33.33%