Q. The accountants of a company show sales of Rs. 12,600. The primary cost is 35% of sales and trading cost accounts for 25% of the gross profit. Gross profit is arrived at by excluding the primary cost plus the cost of advertising expenses of Rs. 1400, director's salary of Rs. 650 per annum plus 2% annual sales as miscellaneous costs. Find the percentage profit (approx) on a capital investment of Rs. 14,000?

  • (A) 35%
  • (B) 31%
  • (C) 28%
  • (D) 26%
βœ… Correct Answer: (B) 31%

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