Accounting Multiple Choice Question – 29 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The gross profit margin earned by a shopkeeper who sells all goods at 25% above their cost is?

Select ONE answer:

  1. 20%
  2. 30%
  3. 33 1/3 %
  4. 35%

 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. £25.  Selling price = Cost + gross profit = £125 Gross profit Margin = Gross Profit as a percentage of selling price = £25 / £125 = 20%.
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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