Use the following information to answer this question. | | $ | | --- | ---: | | Stock(Inventory) 1 January 2011 | 60 000 | | Stock(inventory) 31 December 2011 | 84 000 | | Turnover | 480 000 | | Cost of goods sold | 360 000 | What is the gross profit margin?

A25 %

B33⅓ %

C66⅔ %

D75 %

Explanation: Gross profit

= 480\,000-360\,000 = \$120\,000

; margin

= \dfrac{120\,000}{480\,000} = 25\%

ZIMSEC Principles of Accounts 7112/1 Paper 1 (Multiple Choice), November 2014, Q28

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