Question

Head office send goods to branch at 20% profit on invoice price. The percentage of profit on cost comes too​

Answer 1

Bombay traders Ltd. sends goods to its madras Branch at cost plus 25 percent. ... Goods returned by branch debtor direct to head office (selling price). 80 ... Goods are supplied to branch at a profit of 20% on sale price.

Answer 2

Answer:

Concept:

The profit percentage can be calculated either on cost or on invoice price.

Solution:

If the profit percentage is 20% on invoice price, then it should be 25% on cost.