# Practice Exam 1 [ aka CBT 1] for APII question 1.2 Query

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Registered Posts: 9 Regular contributor ⭐
Dear Community !

This is making me paranoid, can someone just clear this up for me. I suspect a mistake on the answer sheet.

If gross sales margin is 35%. The sales figure was 27100, then surely the cost of sales is just:

27100/1.35 = 20074.07 ( the answer according to the answer sheet is 17615)

Clearly I have not thought this through right ?

Any input much appreciated , even if it is to tell me to read my book again !
Thanks James

• Registered Posts: 138 Dedicated contributor 🦉
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James AAT wrote: »
Dear Community !

This is making me paranoid, can someone just clear this up for me. I suspect a mistake on the answer sheet.

If gross sales margin is 35%. The sales figure was 27100, then surely the cost of sales is just:

27100/1.35 = 20074.07 ( the answer according to the answer sheet is 17615)

Clearly I have not thought this through right ?

Any input much appreciated , even if it is to tell me to read my book again !
Thanks James

Hi James,

It's asking for the cost of sale.

100% = Sales value
35% = Margin

Therfore the difference between these 2 is the Cost of Sale which is 65%.

27100 x 65% = 17615.

Hope this helps?
• Registered Posts: 9 Regular contributor ⭐
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I am stupid after all ! Sometimes you just need to ask someone.
Sigh !
Thanks Cudey
• Registered Posts: 138 Dedicated contributor 🦉
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James AAT wrote: »
I am stupid after all ! Sometimes you just need to ask someone.
Sigh !
Thanks Cudey

No worries James. I actually did a similar thread on here last year for my AP2.

Best of luck for the exam!
• Registered Posts: 9 Regular contributor ⭐
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Many Thanks