compute gross profit ratio for the purpose of insurance claim from the following data : (1) sales during the previous accounting year Rs. 10,00,000. ( 2) standing charges Rs. 3,60,000. (3) net profit Rs.2,20,000. (4) standing charges were insured only to the extent of Rs. 1,80,000.
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Gross Profit = Net Profit + Insured Standing Charges
= 2,20,000 + 1,80,000 = 4,00,000
Sales = 10,00,000
Gross Profit Ratio = (4,00,000/10,00,000) x 100 = 40%
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