Question

Calculate Gross Profit if, Sales = 20,00,000, Non Operating Expenses = 55,000, COGS = 8,00,000, Capital = 8,00,000 *

Answer 1

Answer:

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Answer 2

The Gross Profit is 3,45,000.

Procedure:

Given:

Sales amount = S = 20,00,000

Non Operating Expenses = O = 55,000

Cost of Goods Sold = COGS = 8,00,000

Capital = CAP = 8,00,000

To Find:

Gross Profit, P

Formula Used:

P = S - CAP - COGS - O

Here, P represents the gross profit

         S represents the sales amount

         CAP represents the capital

         COGS represents the cost of goods sold

         O represents the non-operating costs

Step by Step Explanation:

1. We substitute the given value to the formula
   P = S - CAP - COGS - O
2. After substitution, we get
   P = 20,00,000 - 8,00,000 - 8,00,000 - 55,000
3. Simplifying this, we get
   P = 20,00,000 - 16,55,000
4. Solving the previous step, we get
   P = 3,45,000

Hence, the Gross Profit is 3,45,000.