(a) What is turnover? (b) The following information relates to Mrs. Lulu, a trader. | Goods | selling price N | cost priceN | selling expensesN | | BucketsBoxesBournvitaLace material | 4,0005,0006,00012,000 | 3,5004,0005,50010,500 | 4002503001,000 |
(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 profit x 100
Sales 1
Buckets GP = 4000 - 3500 = 500
GP% 500 x 100 = 12.5%
4000 1
Boxes GP 5000 - 4000 = 1,000
GP% 1000 x 100 = 20%
5000 1
Bournvita GP 6000 - 55oo = 500
GP% 500 x 100 = 8.3
6000 1
Lace Materials GP 12000 - 10500 = 1500
GP% 1500 x 100 = 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 |
