The gross profit margin earned by a shopkeeper who sells all goods at 25% above their cost is?
Select ONE answer:
- 20%
- 30%
- 33 1/3 %
- 35%
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- £25. Selling price = Cost + gross profit = £125 Gross profit Margin = Gross Profit as a percentage of selling price = £25 / £125 = 20%.
- Not correct
- Not correct
- Not correct
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