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If the gross profit margin is 10% of sales, what is the value of the cost...

Accounts - Principles of Accounts
JAMB 2009

If the gross profit margin is 10% of sales, what is the value of the cost of goods sold?

  • A. N10,000
  • B. N90,000
  • C. N105,600
  • D. N110,000
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Correct Answer: Option B
Explanation

\(\frac{10}{100}\) x 100,000 = 10,000

cost of goods sold = sales - profit

100,000 - 10,000 = 90,000


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