Question

Cost of goods sold is Rs. 2,25,000. If a firm earns 25% gross profit on sales, its sales will be:
(a) Rs. 3,00,000
(b) Rs. 2,81,250
(c) Rs. 1,68,750
(d) None of the above
​

Answer 1

Sales will be Rs. 3,00,000

Explanation:

Given :

Cost of goods sold = Rs. 2,25,000

firm's Gross Profit on sales = 25%

To find :

Net Sales

Solution :

Let,

Net Sales = x

Cost of Goods Sold = Net Sales - Gross Profit

⇒ 2,25,000 = x - 25% of x

⇒ 2,25,000 = x - 25x/100

⇒ 2,25,000 = x - 0.25x

⇒ 2,25,000 = 0.75x

⇒ x = 2,25,000 / 0.75

⇒ x = 3,00,000

Net Sales = Rs. 3,00,000

Therefore, Option (a) Rs. 3,00,000

Sales will be Rs. 3,00,000

Answer 2

Answer:

Given :-

• The cost of goods sold is Rs 225000. If a firm earns 25% gross profit on sales.

To Find :-

• What is the sales.

Formula Used :-

$\longmapsto \sf\boxed{\bold{\pink{Sales - Cost\: Of\: Goods =\: Gross\: Profit}}}$

Solution :-

Let,

$\mapsto$ Sales = x

First, we have to find the gross profit :

$\bigstar \: \: \sf\bold{Gross\: Profit =\: 25\%\: of\: Sales}$

$\implies \sf Gross\: Profit =\: 25\%\: \times x$

$\implies \sf Gross\: Profit =\: \dfrac{25}{100} \times x$

$\implies \sf Gross\: Profit =\: \dfrac{25 \times x}{100}$

$\implies \sf\bold{\purple{Gross\: Profit =\: 0.25x}}$

Now, we have to find the sales :

Given :

• Cost of Goods = Rs 225000
• Gross profit = 0.25x

According to the question by using the formula we get,

$\longrightarrow \sf x - 225000 =\: 0.25x$

$\longrightarrow \sf x - 0.25x =\: 225000$

$\longrightarrow \sf x - \dfrac{25x}{100} =\: 225000$

$\longrightarrow \sf \dfrac{100x - 25x}{100} =\: 225000$

$\longrightarrow \sf \dfrac{75x}{100} =\: 225000$

$\longrightarrow \sf 0.75x =\: 225000$

$\longrightarrow \sf x =\: \dfrac{225000}{0.75}$

$\longrightarrow \sf x =\: \dfrac{225000}{\dfrac{75}{100}}$

$\longrightarrow \sf x =\: \dfrac{225000}{1} \times \dfrac{100}{75}$

$\longrightarrow \sf x =\: \dfrac{\cancel{22500000}}{\cancel{75}}$

$\longrightarrow \sf x =\: \dfrac{300000}{1}$

$\longrightarrow \sf\bold{\red{x =\: Rs\: 300000}}$

$\therefore$ The sales is Rs 300000.

Hence, the correct options is option no (a) Rs 300000.