Question

7. Calculate Gross profit if rate of gross profit is 20% on cost of goods sold and cost of goods sold is Rs. 120000 ​

Answer 1

Answer:

Correct option is B)

If gross profit is 20% on sales then it would 25% on cost.

So,

Gross profit = Cost of goods sold x Gross profit margin on cost

                     = 120000 x 25/100

                     = Rs.30000