Question

If cost of production = ₹
180000 and profit to be
charged at the rate 10%. Then
calculate profit on cost and
selling price
​

Answer 1

Answer:

Gross Profit is calculated by the below equation:

Gross Profit = Sales - Cost of goods sold

In the given situation, gross profit is 20% on the cost of goods sold.

Hence, assume cost of goods sold is 100, than the sales will be Rs.100+ Rs.20 i.e. Rs.120

Accordingly 

Cost of goods sold will be = Rs.150000 * 100

                                                      120

Cost of goods sold = Rs. 125000

Therefore Gross  Profit = Cost of Goods sold * 20%

 Gross Profit = Rs.125000 * 20%

Gross Profit = Rs.25000

Step-by-step explanation:

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