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JAMB Commerce 1994 Question 11

Question 11

Business Calculations

A company earned a total revenue of ₦108 million with a total cost of ₦91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit.

  1. A.₦24.65million
  2. B.₦17.00million
  3. C.₦9.35million
  4. D.₦7.65million.
Show the answer and explanation

Answer: C (₦9.35million)

Explanation

Gross profit = 108 − 91 = ₦17 million. Tax = 45% × 17 = ₦7.65 million. Net profit = 17 − 7.65 = ₦9.35 million.