If the gross profit margin is 10% of sales; what is the value of the cost of goods sold?

A. N10,000
B. N90,000
C. N105,600
D. N110,000

Correct Answer:

Option B – N90,000

Explanation

10/100 x 100,000 = 10,000

cost of goods sold = sales – profit

100,000 – 10,000 = 90,000