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FRmini exercises - question 1

Nnashlove11y ago
A butcher sells $300,000 of meat at a consistent mark up of 25%. His inventory at the start of the year was $15,000. This had increased by 20% by the end of the year. Calculate the purchases for the year. i did : sales 300,000 less cost of sales opening inventory 15000 purchases x less c/inventory (18000) ----------------- (225,000) ------------ Gross profit (markup 25%) 75,000 and finally i'm getting purchases amounted to : $ 228000 why is my answer wrong ?
Nnashlove11y ago#1
i got the answer. i found the mistake i made i used margin instead of mark-up.
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