Question

. A firm's credit revenue from operations is 3,60,000, cash revenue from
operations is 70,000. Cost of revenue from operations is 3,61.200. Its gross
profit ratio will be:
(A) 11%
(B) 15%
(C) 18%
(D) 16%
​

Answer 1

Explanation:

A

11%

B

15%

C

18%

D

16%

Answer d

Answer 2

Answer:

Option (D) 16%

Explanation:

Credit revenue from operations = 3,60,000

Cash revenue from operations = 70,000

Cost of revenue from operations = 3,61,200

Gross Profit Ratio = ??

Solution :

★ Gross Profit Ratio = (Gross Profit/Revenue from Operations) × 100

• Revenue from Operations = Credit revenue from operations + Cash revenue from operations

• Revenue from Operations = 3,60,000 + 70,000

Revenue from Operations = 4,30,000

• Gross Profit = Revenue from Operations - Cost of revenue from operations

Gross Profit = 4,30,000 - 3,61,200

Gross Profit = 68,800

★ Gross Profit Ratio = (Gross Profit/Revenue from Operations) × 100

= (68,800/4,30,000) × 100

= 16%

Gross Profit Ratio = 16%

Therefore, option (D) 16%

Gross Profit Ratio will be 16%.