JAMB Accounts Principles of Accounts 2011 Paper

Concept:Gross profit margin is the percentage of sales that is gross profit; cost of goods sold is the remaining percentage of sales.Explanation:Gross profit margin is 20%, so cost of goods sold is 80% of sales.$$\text{Cost of goods sold} = 80\% \times 10{,}600$$$$= 0.80 \times 10{,}600 = 8{,}480$$Rent and depreciation are expenses and do not affect cost of goods sold.Answer:N8,480