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Mr Ojo gives you the following information on 31st July 2...

Mr Ojo gives you the following information on 31st July 2017 Opening Stock 7,000 Closing Stock 12,000 Purchases 60,000 Expenses 4,500 Uniform margin of 33 \(\frac{1}{3}\) % You are required to calculate the sales

A.

55,000

B.

82,500

C.

27,500

D.

50,000

Correct answer is B

Firstly, convert margin to mark-up i.e, 33 \(\frac{1}{3}\)% = \(\frac{100}{300}={1}{3-1}={1}{2}\) or 50% Secondly, Cost of goods sold = Opening stock + Purchases - Closing Stock C.p = 7,000 + 60,000 - 12,000 C.p = ₦55,000 Thirdly, Profit = 50% × 55,000 = ₦27,500 Therefore, Sales = Cp + P ⇒ 55,000 + 27,500 = ₦82,500