WAEC Accounting 2017 Objective — Question 30
Question 30 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.
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30. A trader sells goods at an average margin of 20%. His cost of sales for the month amounted to N720,000. What is his profit figure?
- A. A. N900,000
- B. B. N864,000
- C. C. N840,000
- D. D. N180,000Correct
Explanation
Margin=20%=1/5. Mark up = 1/(5-1) = 1/4 = 25%. Profit = 25% x N720,000 = N180,000.
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