passwella.
Menu

JAMB Principles of Accounts 1994 Question 44

Question 44

Interpretation of Accounts

Given:
Sales ₦20 000
Cost of sales ₦15 000
The gross profit margin would be

  1. A.33.33%
  2. B.25.00%
  3. C.20.00%
  4. D.14.28%
Show the answer and explanation

Answer: B (25.00%)

Explanation

Gross profit = 20 000 − 15 000 = ₦5 000. Margin = 5 000 ÷ 20 000 × 100 = 25%.