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SSC Financial and Cost Accounting P-1 QUESTION #9659
Question 1
A firm's goods are sold at a margin of 25% on sales. Purchases = Rs. 155,000; Opening Stock = Rs. 10,000; Closing Stock = Rs. 15,000. What are total Sales?
  • Rs. 200,000✔️
  • Rs. 150,000
  • Rs. 187,500
  • Rs. 175,000
Correct Answer Explanation
COGS = 10,000 + 155,000 – 15,000 = Rs. 150,000. Margin = 25%, so COGS = 75% of Sales. Sales = 150,000 × 100/75 = Rs. 200,000. The margin formula: Sales = COGS/(1 – Margin%) = 150,000/0.75.