Calculate Sales?

Sales is $400,000. Option C.

Sales  400,000  100%

COGS  300,000    75%

GP        100,000    25%

 

or $300,000/75% = $400,000

 

Opening             $  25,000

Purchases          325,000

Avail. for Sale    350,000

Closing                  50,000

COGS                    300,000

Yes option c400000. Because our cgs is300000 and gp is25% of sales then sales400000 - cgs300000 = gp100000 this is25% of above400000 sales.

C. $400,000

Profit ratio to sales was25% hence margin to markup since we have cost of sales value of $300,000. The ratio for gross profit will be0.333 thus25/75 multiply by $300,000 will be $99,999.99 approximately $100,000. Hence total sales figure for us to get profit of25% margin ($100,000) is $400,000 ($300,000 + $100,000).

Note margin to mark up we deduct the margin percentage given from the denominator of100% and mark up to margin we add.

The sales would be C. $400,000...

C. $400,000 is correct amount of sales

THE SALES IS400000 I.E OPTION C.....................

 

C) $400000

 

i.e. COGS + GP =300000 +100000 =400000

Correct answer is A. $300,000