(a) What is turnover? (b) The following information relates to Mrs. Lulu, a trader. Goods...
COMMERCE
WAEC 2006
(a) What is turnover?
(b) The following information relates to Mrs. Lulu, a trader.
| Goods | selling price N | cost price N | selling expenses N |
| Buckets Boxes Bournvita Lace material | 4,000 5,000 6,000 12,000 | 3,500 4,000 5,500 10,500 | 400 250 300 1,000 |
(i) Calculate the gross profit percentage on each item. (ii) Calculate the net profit on each item.
Explanation
(a) The term turnover refers to the total net sales of a business in a given period
(i) Gross Profit = Selling price - Cost price
Gross profit% =Gross profitx 100
Sales 1
BucketsGP = 4000 - 3500 = 500
GP% 500 x100 = 12.5%
4000 1
BoxesGP 5000 - 4000 = 1,000
GP%1000x100 = 20%
5000 1
BournvitaGP 6000 - 55oo = 500
GP% 500 x100 = 8.3
6000 1
Lace MaterialsGP 12000 - 10500 = 1500
GP% 1500 x100= 12.5%
12000 1
Net Profit
Gross profit - Expenses = Net profit
Buckets 500 - 400 = 100
Boxes 1000 - 250 = 750
Bournvita 500 - 300 = 200
Lace Materials 1500 - 1000 = 500
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