A sends goods costing ` 1,00,000 on consignment to yield a profit of 20% on cost. What is the invoice price

Name: A sends goods costing ` 1,00,000 on consignment to yield a profit of 20% on cost. What is the invoice price
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Question

Quizplus · Accepted Answer

The invoice price is calculated as the cost plus the desired profit. Here, the cost is `1,00,000 and the desired profit is 20% of the cost. So, the profit is `20,000 (20% of 1,00,000). Therefore, the invoice price is `1,00,000 + `20,000 = `1,20,000.

A Sends Goods Costing ` 1,00,000 on Consignment to Yield