Accounting problem - please help !

Ashish shetty (Student CA IPC / IPCC) (222 Points)

28 October 2013  



I have few doubts in final accounts of cpt,please answer this question with explanation


1)A Company wishes to earn 20% profit margin on selling price.What will the profit mark up on cost,which will acheive the required profit margin ?

Answer given - 25%   how ?? surprise


2)If sales is rs 2,000 and rate of gross profit on cost of goods sold is 25%,then cost of goods sold will be ?


Thanks in advance smiley