Bob is a soletrader. He has calculated a cost of sales figure for the year which is $342,000. Bob received a payment of $8,030 into the business bank account for goods sold on a special deal to Harry an this amount has been included within sales. The figure of $8,030 was calculated by adding a mark up of 10% to the cost of the goods. His gross profit percentage on all other goods sold was 20% of sales.
What is the total figure of sales for the year?
Please help me answer this. thank you
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11y ago#1The sales to Harry of 8030 must have had a cost of 100/110 x 8030 = 7300
(the profit is 10% of cost).
So the cost of the other sales is 342000 - 7300 = 334,700.
So the selling price of the other sales is 100/80 x 334700 = 418375 (the profit is 20% of sales).
So the total sales are 418375 + 8030
(If you are confused about mark-ups and margins, then watch the free lecture on it)
I haven't come across such a question until now, but I will try ;)
We can calculate the cost of sale for the sale of 8,030 using 10% mark up given. That will be:
8,030 x 100/110 = 7,300
When we eliminate that portion of cost of sale from the total cost of sales Bob calculated for the year, we get cost of sale for the remaining sales. That will be:
342,000 - 7,300 = 334,700
We can then use this amount and 20% margin given to find the remaining sales. That would be:
334,700 x 100/80 = 418,375.
So, finally, total sales for the year will be:
418,375 + 8,030 = 426,405
John Sir:
Please confirm if this answer is correct or wrong.
My bad,.. You posted the answer just before me.. :)
But Sir,
is it 418, 375 + 7300 or 418,375 + 8,030??
7,300 is the cost of sales for the sale of 8,030 .. right?
11y ago#4Yes - that is correct.
thank you..
11y ago#6You are welcome :-)
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