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A trader sells goods at an average margin of 20%. His cost of sales for...

Accounts - Principles of Accounts
WAEC 2017

A trader sells goods at an average margin of 20%. His cost of sales for the month amounted to N720,000. What is his profit figure? 

  • A. N900,000
  • B. N864,000
  • C. N840,000
  • D. N180,000 
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Correct Answer: Option B
Explanation

\(\frac{20}{100}\) x 720,000 = 144,000

720,000 + 144,000 = 864,000


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