Question
Question 4 (Marks: 15) Robert is a student and he works as an agent for a company that sells energy products in his spare time,
Question 4 (Marks: 15) Robert is a student and he works as an agent for a company that sells energy products in his spare time, in order to have some extra spending money. He is doing some calculations to determine how much profit he made for the month of March 2021. He is not a registered VAT vendor and VAT is not applicable to the question. He asks for your help and provides you with the following information. Description Amount (R) Total sales 17 000 Cost of inventory purchased 11 500 Fuel expense 1 250 Courier costs paid for sales 755 Telephone costs 550 Robert only buys inventory when he receives an order, he does not keep any inventory on hand. Required: Based on the information, calculate the following for Robert for the month of March 2021: Q.4.1 Calculate the gross profit. (2) Q.4.2 Discuss the difference between gross profit percentage and markup percentage. (4) Q.4.3 Calculate the gross profit percentage. Round to two decimals. (3) Q.4.4 Calculate the markup on cost percentage. Round to two decimals. (3) Q.4.5 Robert was informed that the costs of the products are going to increase with 10%. Based on the May 2021 amounts, what will his gross profit be if he does not increase his selling prices. (
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