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WAEC Accounting 2022 Paper

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Question : 7

Total: 50

Use the following information to answer questions below

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The margin would be

1/2
1/5
2/5
2/3

Solution:

Concept:

Margin is the ratio of profit to selling price, expressed as a fraction.

Explanation:

The trader sold three-quarter of the goods.

Cost of goods sold

= \frac{3}{4} \times 16,000 = 12,000

Selling price

= 20,000

Profit

= 20,000 - 12,000 = 8,000

Margin

= \frac{\text{Profit}}{\text{Selling Price}} = \frac{8,000}{20,000} = \frac{2}{5}

Answer:

C.

\frac{2}{5}

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