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A company goods sent to branch at invoiced price is ₦30,870 at ...

A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
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  • A ₦20,000
  • B ₦6,000
  • C ₦6,174
  • D ₦10,000
Correct Answer: Option C
Explanation:
Convert mark-up to margin
\(\frac{25}{100}={1}{4}={1}{1+4}={1}{5}\)
profit = \(\frac{1}{5}\) x 30,870 = 6,174

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