Abelawo ltd operates a retail branch at Aba. All purchases are made by the head office in Onitsha and goods are charged to the branch at cost plus 50%. During the year ended. Goods sent to branch at invoiced price is ₦30,870, cash sales ₦13,020 and Bad debt amounted to 129. From the following, what is the profit?
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Correct Answer: Option B
Explanation:
Goods sent to branch : Selling price
⇒ ₦30,870
Convert mark-up to margin
Â
= ₦10,290
Goods sent to branch : Selling price
⇒ ₦30,870
Convert mark-up to margin
| 50 100 | = | 1 2 | = | 1 2 + 1 | = | 1 3 |
Â
| Profit | = | 1 3 | × | 30,870 |
= ₦10,290