Goods are invoiced to branches at cost plus 25%. A branch reports unsold stock of Rs 50,000. Compute the cost price of the goods and the profit margin for the unsold stock.
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Load is 25% – Cost is Rs 100 |
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Selling Price |
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Rs 25 + 100 = Rs 125 |
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If Selling Price |
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Rs 50,000 |
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then Profit Margin |
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25 × 50,000/125 = Rs 10,000 |
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i.e. Cost Price |
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Rs 50,000 – 10,000 |
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Rs 40,000 |
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