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WAEC Accounting 2024 Paper

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Question : 24

Total: 50

Use the following information to answer this question.

4/5
3/5
2/3
1/5

Solution:

Concept:

Margin is profit expressed as a fraction of sales, while mark-up is profit expressed as a fraction of cost.

Explanation:

Given margin

= \frac{\text{Profit}}{\text{Sales}} = \frac{2}{5}

.

So take

\text{Profit} = 2

parts and

\text{Sales} = 5

parts.

Cost

= \text{Sales} - \text{Profit} = 5 - 2 = 3

parts.

Now mark-up

= \frac{\text{Profit}}{\text{Cost}} = \frac{2}{3}

.

Answer:

\frac{2}{3}

, which is option C.

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