Question

A company has sales of GH₵ 1,000. The company sells three types of goods. Sixty percent of sales are of type A which is sold at a mark-up of 20%. Type B goods are sold at a margin of 30%. The cost of type B sold in the year was GH₵ 154 and total gross profit for the year was GH₵ 184. What this the total sales for type C?

A company has sales of GH₵ 1,000. The company sells three types of goods. Sixty percent of sales are of type A which is sold at a mark-up of 20%. Type B goods are sold at a margin of 30%. The cost of type B sold in the year was GH₵ 154 and total gross profit for the year was GH₵ 184. What was the gross profit for type B

Answer 1

Solution

Computations of gross profit for Type B and total sales for Type C -

Computations –

Sales of Type A = 60% x 1,000 = 600

Gross profit = 20%

Gross profit = 600 x 20/120 = 100

Cost of goods sold = 500

Type B –

Cost of goods sold = 154

Gross profit = 30%

Gross profit = 154 x 30/70 = 66

Sales = 154 + 66 = 220

Gross profit for Type B = 66

Sales of Type A + Type B = 600 + 220 = 820

Total sales for Type C = 1,000 – 820 = 180

Gross profit for Type C = total gross profit – gross profit of Type A and Type B

= 184 – 100 – 66 = 18