WAEC Accounting 2023 Objective — Question 39
Question 39 of 50 from the West African Examinations Council (WAEC) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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If sales is D 12,000 and the gross profit mark-up percentage is 25%. What is the cost of sales?
- A. D 9,600Correct
- B. D 9,000
- C. D 3,000
- D. D 2,400
Explanation
A 25% mark-up equals a margin of 1/5 (20%) of sales: profit = 1/5 × 12,000 = D2,400; Cost of sales = 12,000 - 2,400 = D9,600.
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