In the year ended 31 August 2019, Marina made total sales of £552,000. She made sales returns of £22,500. She allowed her customers discounts of £2,500, 40% of which were not taken up. Her cost of sales for the year was £386,000. What was Marina's gross profit for the year ended 31 August 2019?

Question

Quizplus · Accepted Answer

Gross profit is calculated as total sales minus sales returns and cost of sales. Discounts not taken up do not affect gross profit. Therefore, gross profit = (£552,000 - £22,500) - £386,000 = £144,500.

In the Year Ended 31 August 2019, Marina Made Total