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If Sales = Rs.8,,, Markup Rate =% of Cost
Calculate Cost of Goods Sold = ?
1. Rs.,
2. Rs.,
3. Rs.,
Good answer with logics By Mr. Taimur so agreed to him.Best of luck.
In markup we take the profit in reference to Cost, so consider cost is 100% and Selling price is 125%, so when you take 100% of selling price it will become cost, which will be 640, 000.
Hope it answers your question.
Its No.1, which is Rs.640,000
If cost is 100 the sale will be 125, because markup is 25% on cost
It will be as under
Cost Sale
100 125
? 800,000
800,000 X 100
-------------------- = 640,000
125
We can also verify it as : 25% of 640,000 will be 160,000 and 640,000+160,000 = 800,000
answer is option (1) 640,000
i.e 25% of 640,000 = 160,000 + 640,000 = 800,000 is the markup price. Thanks.
Mark up on cost% e.g. on sale% hence cost of goods sold = Sales - Markup
e.g.% of=
