Offei, a petty trader sold goods for GH¢36,240. The gross profit being 33\(\frac{1}{3}\)% on cost. What was the cost price?

  • A GH¢45,300
  • B GH¢28,992
  • C GH¢27,180
  • D GH¢24,160
waec 2016accounting

The correct answer is C. GH¢27,180

Cost price = total sales - profit

To begin, we will first have to convert the gross profit to margin. Hence we have;

33\(\frac{1}{3} = \frac{100}{3} \times \frac{1}{100}\)

Cross multiply

\(\frac{1}{3} + 1 = \frac{1}{4}\)

\(\frac{1}{4}\) x 36,240 = 9060

Cost price = 36,240 - 9060 = 27,180

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