Question

A trader carries an avarage stock valued at cost price of rupees 40000 and turned this over 5 times per year. If he marks his stock up by 25% on cost price. What is his gross profit for the year

Answer 1

Answer:

80000 rupees

Explanation:

inventory turnover = cost of goods sold /average inventory 

8=cost of goods sold /40000

cost of goods sold =320000

profit of 20% on sales

therefore profit of 25% on cost of goods sold 

therefore  gross profit = 320000*25%

                                  = 80000

pls mark as brainliest