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

James AATJames AAT New MemberPosts: 9Registered
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

Comments

  • CudeyCudey Well-Known Posts: 138Registered
    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?
  • James AATJames AAT New Member Posts: 9Registered
    I am stupid after all ! Sometimes you just need to ask someone.
    Sigh !
    Thanks Cudey
  • CudeyCudey Well-Known Posts: 138Registered
    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!
  • James AATJames AAT New Member Posts: 9Registered
    Many Thanks
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