WAEC Accounting 2016 Objective — Question 26
Question 26 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.
Advertisement
26. Offei, a petty trader, sold goods for GH¢36,240. The gross profit being 33⅓% on cost. What was the cost price? A. GH¢45,300 B. GH¢28,992 C. GH¢27,180 D. GH¢24,160
- A. GH¢45,300
- B. GH¢28,992
- C. GH¢27,180Correct
- D. GH¢24,160
Explanation
Gross profit mark-up=1/3; profit margin=1/(3+1)=1/4=25%; cost=100%-25%=75% of sales price=75%×36,240=GH¢27,180.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.