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Calculate (i) his average weekly sales during the year


Chikis

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A shopkeeper made a net profit of N12,500 from his business in 1984. The cost price of all the goods he bought during amounted to N104000. His overheads amounted to N13 500. Calculate:

(i) his average weekly sales during the year.

(ii) his net profit as a percentage of his annual turnover. (Take 1 year = 52 weeks)

 

What do the following terms mean as it is concerned with the solving of this problems: (i) turnover (ii) overheads

(iii) net profit

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Turnover = sales ie it is just another word for total takings.

 

Annual turnover = annual sales = (average weekly sales ) x 52

 

Net Profit = Sales - Costs

 

Costs = Cost of goods + overheads

Edited by studiot
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What is overhead?

 

Well you said is was N13500

 

If you are asking what does overhead mean, it is the amount of money you must spend to maintain a shop, market stall or whatever the trader has.

 

You said he was a shopkeeper so his shop costs him the same amount , whether he sells anything or not (electricity, water, perhaps rent, insurance etc)

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Since Selling price = cost price + profit.

Total sales would be N104000 + N12500 = N116500. Could this be right?

Average weekly sale would be [math]\frac{N116500}{52}[/math]

Edited by Chikis
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Ok. Let say his total cost = overheads + cost price of all goods = 13500 + 104000 = N117500

Right?

Sales would be cost + profit = 117500 + 12500 = 130000

average sales would be [math]130000\div52[/math] = N2500

Is this right?

Edited by Chikis
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