Accountancy, asked by shraddharanawade3779, 3 months ago

gross profit is to be divided in which ratio​

Answers

Answered by Anonymous
4

Answer:

˙❥˙The formula for calculating the gross profit ratio is: gross profit divided by net sales x 100. The gross profit is the cost of goods sold minus the total net sales figure.✧*。

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Answered by sourasghotekar123
0

Answer:

  • The gross profit ratio (GP ratio) is a financial ratio that divides a company's gross profit figure by its total net sales to determine its performance and efficiency.
  • The gross profit ratio can also be expressed as a percentage by multiplying the resulting figure by 100.
  • Divide the gross profit by the net sales to get the gross profit ratio.
  • To make the result easier to read and compare, it is usually multiplied by 100 and expressed as a percentage.
  • This allows you to calculate the profit percentage of the company's revenue.
  • The gross profit margin formula, Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue x 100, calculates the percentage of revenue you keep after deducting all costs from each sale.
  • It is used to assess a company's ability to generate revenue while keeping expenses low.

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