Margin

System

Hi can anyone help me answer this......

Gross Profit on Sales = 20%
Cost of Sales was 20,000 pounds
Sales = ???

System

Re:Margin

Dont shout if i get it wrong.

draw the table

left side you have 20 in the middle as its 20%

Then sales is 100% so 100 at the top left and then the difference of 80% - 80 on the bottom left

so you have

100
20
80

(wish i could draw the table on here!)

then the right hand boxes

the only figure you know is the cost of sales at £20,000

so

100
20
80 ........ £20,000

so now do 20000 divide 80 = 250

so now 250 times 20 = 5000

100
20 ........5000
80 ........20000

so missing figure is 25,000

100.......25000
20...........5000
80..........20000