Question

G.P ₹100000, Total sales ₹525000, sakes return ₹ 25000. G.P ratio will be​

Answer 1

Answer:

4:21

Explanation:

100000/525000=4/21

hope it will be helpful to you

Answer 2

Answer:

The Gross profit ratio will be 1/5 or we can write it as 1:5

Explanation:

we have given that

Gross profit= 100000

Total Sales= 525000

sales Return= 25000

We know that the formula to find the Gross profit ratio is equal to

G.P. Ratio = Gross profit/ Net sales

we can find net sales which is equal to

Net sales= total sales- Sales return

net sales= 525000-25000= 500000

Now, put these values in the above formula we get

GPR= Gross profit/ Net sales

=> 100000/500000= 1/5

therefore the the gross profit ratio is 1/5 or 1:5

Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross profit and total net sales revenue. It is a popular tool to evaluate the operational performance of the business . The ratio is computed by dividing the gross profit figure by net sales.