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JAMB Principles of Accounts 2002 Question 34

Question 34

Branch Accounts

A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?

  1. A.35%
  2. B.30%
  3. C.20%
  4. D.15%.
Show the answer and explanation

Answer: C (20%)

Explanation

If cost is 100, selling price is 125, so profit as a percentage of selling price = 25/125 = 20%.