Question

calculate net profit purchass (200 units ) Rs.10000, Freight and carriage Rs. 1200 , Rent and advertising Rs.600, Sales (150 units.) Rs. 10800​

Answer 1

Answer:

Rs. 1,500

Explanation:

Net profit is the revenue left after paying off all the expenses for the respective accounting period.

Net Profit can be computed as:

Sales - (Purchases + Freight and carriage + Rent and advertising)

Substituting the values,

Rs. 10,800 - (Rs. 7,500 + Rs. 1,200 + Rs. 600)

Rs. 10,800 - Rs. 9,300

Rs. 1,500

Wherein,

Cost of each unit = Purchase/No. if units

= Rs. 10,000/200 = Rs. 50 per unit

$cogs = cost \: per \: unit \times number \: of \: units \\ cogs = 50 \times 150 = 7500$