cost of sales =11250000,sales 12500000,cash sales 25% of credit sales ,bad debts 5% ,variable cost 85% of sales ,how to calculate cost of credit sales ?
1 Replies
shilpi
(student)
(780 Points)
Replied 18 August 2020
Let credit sales x. Cash sales 0.25x
X+0.25X=125 lakh, credit sales=100 lakh.
Profit is calculated after considering the impact of bad debts. And here profit margin 10℅ on sales/11.11℅ on cost(after adjusting the impact of bad debts). Credit sales 10000000-profit margin 10℅= 9000000 cost of credit sales....
Am I right?
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