QUESTION $12$

Don Pedro has not kept accurate accounting records during the financial year. He $*$

had opening inventory of $$6,700$ and purchased goods costing $$84,000$ during the

year. At the year$-$end he had $$5,400$ left in inventory. The firm operates with a

margin of $\frac{1}{6}.$

What is Don Pedro's gross profit for the year?

$$17,060$

$$13,750$

$$20,675$

$$16,540$