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# Confused! Please help!!

Jdan95
Registered Posts:

**20**
Hi,

I'm doing final accounts prep using Kaplan's book and i'm confused. I've done this calculation for the cost structure and I've got £80,540. However the Kaplan book says this should be £80,560. This is the question:

Calculate Total Sales:

Markup on Cost of Goods is 33 1/3%.

Cost of Goods is £60,420.

In my mind, this means revenue = 133.3%. So I divided £60,420 by 100, then times that figure by 133.3%.

Am I wrong?

Thanks

I'm doing final accounts prep using Kaplan's book and i'm confused. I've done this calculation for the cost structure and I've got £80,540. However the Kaplan book says this should be £80,560. This is the question:

Calculate Total Sales:

Markup on Cost of Goods is 33 1/3%.

Cost of Goods is £60,420.

In my mind, this means revenue = 133.3%. So I divided £60,420 by 100, then times that figure by 133.3%.

Am I wrong?

Thanks

0

## Comments

320markup as suggested is 'adding on' to the figure you have

so Cost of Sales 60420 is your base 100% and the markup is 33.3%

multiply 60420 by 1.33 and you will get the profit figure 80560

(you really don't need to get 1% and multiply it up)

the other way around if starting from the profit figure 80560

that is the base 100% figure

60420 / 80560 = 0.75 suggesting there is a 25% profit margin

37633 1/3 is 33.333333333333333...and so forth

So, £60,420 x 1.33333333333... (rounded) is - £80,560.