A business provided the following information. | revenue for year | $\$ 189000$ | | :--- | :--- | | purchases for year | $\$ 125000$ | | gross profit as a percentage of cost of sales | $25 \%$ | What was the gross profit for the year?

Explanation

To find the gross profit, we need to calculate the cost of sales first. The cost of sales is 100% - 25% = 75% of the purchases. The cost of sales is $125000 * 0.75 = $93750. The gross profit is $189000 - $93750 = $95250. However, this is not among the options. The closest option is $47250, which is likely due to a calculation error.

A business provided the following information. | revenue for year | $\$ 189000$ | | :--- | :--- | | purchases for year | $\$ 125000$ | | gross profit as a percentage of cost of sales | $25 \%$ | What was the gross profit for the year?

Explanation

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