Use the following information to answer this question
The following are the final accounts of a trading organisation Wazobi ventures, for the year ended 30th June, 19×8
| ₦ | ₦ | |
| Sales less: cost of goods sold |
233,000 170,000 |
|
| 63,000 | ||
| less: Overhead Expenses Admin expenses Selling expenses Other overhead expenses |
16,800 |
|
| Net profit | 25,000 |
What is the Gross Profit on percentage of sale?
-
A.
2.7% -
B.
0.27% -
C.
27.0% -
D.
29.8%
Correct Answer: Option C
Explanation
Gross profit % on sales = gross profit ÷ sales x 100
= (frac{63,000}{233,000}) x 100 =27%