WAEC Accounting 2014 Objective — Question 21
Question 21 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.
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The total sales of a business was GH¢2,160,000. The average mark-up for the year was 50%. The gross profit is
- A. GH¢2,160,000
- B. GH¢1,440,000
- C. GH¢1,080,000
- D. GH¢720,000Correct
Explanation
Mark-up of 50% (1/2) means margin = 1/3. Gross profit = 1/3 × 2,160,000 = GH¢720,000.
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