Question 25
Incomplete RecordsI. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is ₦23 000
IV. He turned over his stock five times in the year.
The net profit for the year is
- A.₦5 750
- B.₦5 650
- C.₦3 200
- D.₦2 300
Show the answer and explanation
Answer: D (₦2 300)
Explanation
Gross profit = 23 000 − 18 400 = ₦4 600. Expenses = 10% of 23 000 = ₦2 300. Net profit = 4 600 − 2 300 = ₦2 300.