Question

6. If the rate of gross profit is 25% on sales and the cost of goods sold is * 1,00,000, the gross
profit will be :
a) 25.000
b) 33,333
c) 28,000​

Answer 1

Answer:

Option b) 33,333

Gross Profit will be Rs. 33,333.

Explanation:

Consider,

• Net sales as x

★ Net Sales = COGS + GP

$\rightarrow$ x = 1,00,000 + 25% of x

$\rightarrow$ x - 25% of x = 1,00,000

$\rightarrow$ x - 0.25x = 1,00,000

$\rightarrow$ 0.75x = 1,00,000

$\rightarrow$ x = 1,00,000 / 0.75

$\rightarrow$ x = 1,33,333

__________________

★ Gross profit = Net Sales - Cost of Goods Sold

$\rightarrow$ 1,33,333 - 1,00,000

$\rightarrow$ 33,333

Therefore, Gross Profit will be Rs. 33,333.

Answer 2

Given:-

• Rate of gross profit on sales = 25%

• Cost of goods sold = 1,00,000

To Find:-

• Gross Profit

Formula used:-

• Net Sales = Cost of Goods sold + GP

• Gross Profit = Net Sales - Cost of Goods sold

Solution:-

Firstly,

Let the Net sales be N.

Net Sales = Cost of Goods sold + GP

$⟹N = 1,00,000 + 25\% \:of\: N$

$⟹N = 1,00,000 + \dfrac{25}{100} × N$

$⟹N = 1,00,000 + 0.25N$

$⟹N - 0.25N = 1,00,000$

$⟹0.75N = 1,00,000$

$⟹N = \dfrac{1,00,000}{0.75}$

$⟹N = \dfrac{1,00,00,000}{75}$

$⟹N = 1,33,333$

Now,

Gross Profit = 1,33,333 - 1,00,000

Gross Profit = 33,333

Hence, Rs. 33,333 will be the Gross Profit.

[ Option B is correct ].

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