Question

find out sales when the cost of goods sold is Rs 1,60,000 & the Gross profit ratio of 20%
a) 2,00,000
b) 40,000
c) 2,40,000
d) 1,20,000​

Answer 1

LET THE SALE PRICE IS 100

and LESS PROFIT= 20

COGS =80

RATE OF PROFIT ON COST=20/80×100=25%

GROSS PROFIT= 160,000×25%

40,000

sales = gross profit+ CoGs

= 40,000+ 160,000

SALES IS 200,000 ANSWER.