MCQ, O-LEVEL Principle of Accounts for june 07

[dasani]

A trader provides the following information.
Cost of goods sold $40,000
Gross Profit 20%


What are the sales?

Can anyone help me how to answer this MCQ. Explain me how i can the answer....

 

[NightmarE]

A trader provides the following information.
Cost of goods sold $40,000
Gross Profit 20%


What are the sales?

Can anyone help me how to answer this MCQ. Explain me how i can the answer....

20% is gross profit mark up or margin ????
if it is mark up ....
then it is the gross profit was 20% of cost of sales ....
so ...
40,000 x 20% = $8000
8000 is da gross profit ....
so sales is ....
40,000 + 8,000 = $48000...

if 20% is da margin ( if it is not stated dat it is a mark up or margin dn u assume it is a margin)
if 20% is margin so just convert it 2 mark-up ...
ie .. 20/(100-20) = 20/80 wud b da mark-up ...
u got da mark up ... do da same steps as above ...

 

[NightmarE]

i hope its enuf 4 u 2 ndrstnd ... :-(
if u stl have n e prbs to jst ask away ...