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Use the following information to answer this question. The margin for a business is 2/5...

Accounts - Principles of Accounts
WAEC 2024

Use the following information to answer this question.
The margin for a business is 2/5 and the cost of sales is $ 120,000.  

The sales value for the business is 

  • A. $216,000.
  • B. $204,000.  
  • C. $ 200,000.
  • D. $ 192,000.  
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Correct Answer: Option C
Explanation

\(\frac{2}{3}\) = \(\frac{\text{profit}}{\text{cost}}\) = \(\frac{\text{profit}}{120,000}\)

Profit = \(\frac{2 \times 120,000}{3}\)

= #80,000

Sales = cost + profit

= #120,000 + #80,000

= # 200,000


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WAEC offline past questions - with all answers and explanations in one app - Download for free
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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