Accounting Multiple Choice Question – 29 March 2020

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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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014