MCQ O-LEVEL Principle of accounts forjune 03

[dasani]

A business ptovides the following information.

Sales for the year $189000
Purchase for year $125000
gross profit as a percentage of cost of sales 25%

What is the gross profit for the year?

please help me.

 

[hamza95]

GP= sales - cost of sales
GP/COS =1/4 or 25/100......so GP/sales becomes 1/5 or 20/100
GP is 20% of sales, then GP = 189000 x 1/5
GP = $37800