Help on Mark-Up

Sammy_Becs

Apologies, i realise my last post looked posted weird.
Could anyone help me with how i answer with question? Thank you in advance.


Receivables days are 52, Receivables are £3215920, these prices are on a mark-up of 25%, Selling cost is 5% of sales, Admin cost are 3.2% of sales, net assets are £1452500. There is 365 days in the year

Sales
COS
Gross Profit
Selling Cost
Admin Cost
Net Profit


Gross Profit Margin %
Net Profit Margin %
RONA %

Resmi

Hi where did you get this question from . Do you know how to answer this

dumutroba

Sales
3215920x365/52=22573284
COS
Mark up(gross profit) + COS = sales
25%+75%=100%
22573284/100%x75%=16929963
GP
22573284/100%x25%=5643321
Selling cost
22573284x5%=1128664.20
Admin cost
22573284x3.2%=722345.08
Net Profit
GP - selling+admin cost=3792311.80

For the ratios you just fill in the formula with the above

RyanP123

Hi Sammy, could you confirm where you got this question from please as had a similar one on my decision and control exam yesterday. Thanks

sophie_612

please can someone confirm the above working is correct? as in the aat samples it shows inventory holding instead of receivables and they work out cos and sales differently?

PeterC

I agree with the Sales figure, although I actually make it £22,573,285

COS + Markup = Sales
COS + (COS x 25%) = Sales
COS x 1.25 = Sales
COS = Sales/1.25 = 22.573.285/1.25 = £18,058,628

The rest is probably straightforward

RyanP123

Herta is a division of a large company.Herta has a trade receivable collection period of 52days,average trade receivable of 301 600 pounds.Price are set using a mark up cost of 25%.Selling cost are 5% of sales and administration cost are 3.2% of sales.Net asset are 1452500 pounds.There are 365 days in a year.

Calculate,

sales
cost of sales
Gross profit
selling costs
admin costs
net profit

Sales - £2,117,000
Cost of Sales - £1,587,750
Gross Profit - £529,250
Selling Cost - £105,850
Admin Costs - £67,744
Net Profit - £355,656


Could someone confirm if the figures shoved are correct please. Thanks

PeterC

Sales Revenue = Cost of Sales + 25% ie.: Cost of Sales x 1.25
Cost of Sales = Sales Revenue/1.25 = 2,117,000/1.25 = £1,693,600

RyanP123

Thanks Peter. That’s what I thought but I got in a pickle right at the last moment and changed my answer to what I put above. I think I would have failed now. Thanks

RyanP123

Hi Peter, is it possible do you think to pass the decision and control exam if I struggle with the written task questions and this question 6?