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A business has compiled the following information for the year ended 31 October 2002:
                                                                                $
Opening inventory                                             386,200
Purchases                                                         989,000
Closing inventory                                               422,700

The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?

A   $1,333,500
B   $1,587,500
C   $2,381,250
D   The sales revenue figure cannot be calculated from this information

B $952,500 × 100/60 = $1,587,500

b

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