Use the following information to answer below
GH⊄
Sales 200000
Purchase 170000
Opening stock 40000
Closing stock 50000
The gross profit percentage is
  • A 10%
  • B 20%
  • C 25%
  • D 15%
waec 2022accounting

The correct answer is B. 20%

Gross profit percentage = Gross profit/Sales x 100

Cost of goods sold = 40,000 + 170,000 - 50,000

= 160,000

Gross profit = 200,000 - 160,000

= 40,000

Gross profit % = 40,000/200,000 x 100

= 20%

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