Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods….

Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods are charged to the branch at cost plus 50%. During the year ended. Goods sent to branch at invoiced price is ₦30,870, cash sales ₦13,020 and Bad debt amounted to 129. From the following, what is the profit?

A. 20,580
B. 10,290
C. 7980
D. 30,870

Correct Answer: Option B

B. 10,290