The margin would be?

By: |Published on: Jan 6|Categories: Accounting WAEC| 0 comments

Use the following information to answer question below

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

A. 1/2
B. 1/5
C. 2/5
D. 2/3

Correct Answer:

Option B – 1/5

Explanation

Margin = Profit/Selling Price x 100

= 4,000/20,000 x 100

= 20%

= 20/100

= 1/5

Users Also Read These:

SEE ALSO  Commission of N5,000 to a sales representative is debited to salaries account. This is an error of?

Copyright warnings! Do not copy.