Question

A company earns gross profit of 25% on cost. Its Credit Revenue from Operations. le. Credit Sales an two times its Cash Revenue from Operations, ie, Cash Sales If Credit Revenue from Operations Credit Sales are 10,00,000, calculate Gross Profit Ratio.​

Answer 1

Answer:

Gross Profit Ratio = 20%

Explanation:

Credit Revenue from operations is two times its Cash Revenue from operations.

$\boxed{\textsf{Revenue from operations = Credit Revenue from operations + Cash Revenue from operations}}$

$\sf{\longrightarrow}\:Revenue\:from\:operations\:=\:10,00,000 +\dfrac{10,00,000}{2}$

$\sf{\longrightarrow}\:Revenue\:from\:operations\:=\:10,00,000 +5,00,000$

$\sf{\longrightarrow}\:Revenue\:from\:operations\:=\:15,00,000$

Revenue from Operations = 15,00,000

Let,

Cost of Revenue from operations = x

Revenue from operations = Cost of Revenue from operations + Gross Profit

$\longrightarrow$ 15,00,000 = x + 25% of x

$\longrightarrow$ 15,00,000 = x + 0.25x

$\longrightarrow$15,00,000 = 1.25x

$\longrightarrow$ x = 15,00,000/1.25

$\longrightarrow$ x = 12,00,000

Cost of Revenue from operations = 12,00,000

★ Gross Profit 25% on Cost :

$\longrightarrow$ 12,00,000 × (25/100)

$\longrightarrow$ 3,00,000

Gross Profit = 3,00,000

$\boxed{\sf{Gross\:profit\:Ratio = \dfrac{Gross\:Profit}{Revenue\:from\:operations} \times 100}}$

$\longrightarrow$ $\dfrac{3,00,000}{15,00,000} \: \times \: 100$

$\longrightarrow$ 20%

Therefore, Gross Profit Ratio = 20%

Answer 2

Answer:

gross profit ratio is...

Explanation:

20%