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

55,000

82,500

27,500

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

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