JAMB Commerce 2022 Objective — Question 9

Question 9 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation.

9. What is the net profit for a company that earned N18 million and incurred a total cost of N7 million, considering that it paid 45% tax on its gross profit?

A. (A) N6.05 millionCorrect
B. (B) N11.00 million
C. (C) N2.90 million
D. (D) N1.5 million

Explanation

Gross profit = #18m − #7m = #11m. Tax = 45% of #11m = #4.95m. Net profit = #11m − #4.95m = #6.05 million.

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