A business sells inventory for R3 000 (which shows a discount of 10% on normal selling price).

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A business sells inventory for R3 000 (which shows a discount of 10% on normal selling price).


You are required to:

1. Calculate the normal selling price.

2. Calculate the cost of inventory sold, assuming a mark-up of 50% on cost.

3. Calculate the gross profit.

4. Discuss the meaning of gross profit and net profit.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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