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WAEC Financial Accounting 2024 Question 24

Question 24

Incomplete Records

Use the following information to answer questions 24 and 25.
The margin for a business is 2/5 and the cost of sales is $120,000.
The mark-up for the business is

  1. A.4/5
  2. B.3/5
  3. C.2/3
  4. D.1/5
Show the answer and explanation

Answer: C (2/3)

Explanation

A margin of 2/5 means profit 2 on sales 5, so cost is 3: mark-up = 2/3.