really daft percentage question ACPR

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FrancesM
FrancesM Registered Posts: 14
in AAT Level 3 (Level 6 in Scotland)
There is a question on the aat sample assessment:

No entries have been made for closing inventory as at March 31 20x7. It has been valued at sales price of £19420 the sales price is set at 25% higher than the cost of the goods. Ignore vat

Why does my brain work it out that the answer of the inventory is 14565 (25% of 19420)?

The answer in the assessment is 15536

I think I have been looking at it too long

Please help

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  • CeeJaySix
    CeeJaySix Registered Posts: 645
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    Sales price is 25% higher than purchase price, ie. 125% x price.
    19,420 / 125 / 100 = 15,536
  • Adele69
    Adele69 Registered Posts: 320
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    Seems a bit mean as I'd only have known this answer doing FSTP markups and margins, after the ACPR module
  • FrancesM
    FrancesM Registered Posts: 14
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    Oh, of course. It says 25% higher! I feel a bit silly now. Thank you.

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