Question

if credit revenue from operation is 700000, cash revenue from operation is rs 100000 cost of revenue from operation is 640000 then gross profit ratio will be​

Answer 1

Answer:

CRFO = Net Sales(RFO) - Gross Profit

Net Sales (RFO) = cash revenue from operations + credit revenue from operations

= 1,00,000 + 7,00,000 = 8,00,000

CRFO = 6,40,000

Substituting the values in the formula.

Let Gross Profit be X

6,40,000 = 8,00,000 - X

X = 8,00,000 - 6,40,000

= 1,60,000

So the value of Gross Profit is = 1,60,000

Answer 2

Answer:

20%

Explanation:

• Credit Revenue from Operations is ₹ 7,00,000,

• Cash Revenue from Operations is ₹ 1,00,000

• Cost of Revenue from Operations is ₹ 6,40,000

Gross Profit Ratio = ??

Solution :

★ Gross Profit Ratio = (Gross Profit/Revenue from Operations) × 100

• Gross Profit = Net revenue from operations - Cost of revenue from operations

(7,00,000 + 1,00,000) - 6,40,000

8,00,000 - 6,40,000  

1,60,000

Gross Profit = ₹ 1,60,000

★ Gross Profit Ratio = (Gross Profit/Revenue from Operations) × 100

(1,60,000/8,00,000) × 100

20%

Gross Profit Ratio = 20%

Therefore, (option 20%)

Gross Profit Ratio will be 20%.