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Aluki fixes prices to make a standard gross profit percentage on sales of 331/3%. The following information is available for the year ended 31 January 20X4 to compute her sales total for the year:
$
Inventory
1 February 20X3 243,000
31 January 20X4 261,700
Purchases 595,400
Purchases returns 41,200What is the sales figure for the year ended 31 January 20X4.
Please don’t simply set me test questions and expect an answer. You must have an answer in the same book in which you found the question, so you should ask about whatever it is in the answer that you are not clear about and then I will help you.
The cost of goods solids 243,000 + 595,400 – 41,200 – 261,700 = 535,500.
The profit is 1/3 of the sales. Therefore the cost is 2/3 of the sales.
Therefore the sales are 535,500 / (2/3) = 803,250
Watch my free lectures on mark-ups and margins, because I work through (and explain) similar examples.
The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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