section c

bits and pieces (6/09)

For part a) of this question, how has the purchase cost been calculated and what does it represent.

If the gross profit is 70%, then the remaining 30% is what. Is it cost of sales, or purchase cost or something else.

I calculated the average sales revenue to be 800000 and the gross profit of 50% of that i.e. 400000. But when I calculated the gross profit by subtracting 335000 from 800000 I got a different figure of 465000. Why am I getting this difference, and which one is correct.