Question

calculate gross profit Ratio: sales ₹500000 gross profit ₹100000​

Answer 1

Answer:

Gross Profit Ratio = 20 %

Explanation:

Given :

Sales = ₹ 5,00,000

Gross Profit = ₹ 1,00,000

To find :

Gross Profit Ratio

Solution :

• Gross Profit Ratio :

Gross Profit Ratio = Gross Profit / Net Sales × 100

$\sf{Gross \: Profit \: Ratio \: = \: \dfrac{Gross \: Profit }{Net \: Sales} \: \times \: 100}$

$\longrightarrow \: \dfrac{1,00,000}{5,00,000} \: \times \: 100$

$\longrightarrow \: 0.2 \: \times \: 100$

$\longrightarrow \: 0.2 \: \times \: 100 \: = \: 20$

$\longrightarrow$ 20 %

Gross Profit Ratio = 20 %

Therefore,

Gross Profit Ratio = 20 %