Question

If Revenue from Operation is Rs.1,60,000 and Gross Profit is Rs. 40,000, Gross Profit Ratio will be:
(a) 30%
(b) 25%
(c) 40%
(d) 50%

Answer 1

Answer:

Answer is attached here.

Answer 2

Answer:

Gross Profit Ratio will be 25%

Explanation:

Given :

• Revenue from Operation is Rs.1,60,000
• Gross Profit is Rs. 40,000

To find :

• Gross Profit Ratio

Solution :

★ Gross Profit Ratio =

$\sf{ \dfrac{Gross \: Profit}{Net \: Sales} \: \times \:100}$

OR

$\sf{\dfrac{Gross \: Profit}{Revenue \: from \: Operation} \: \times \: 100}$

$\sf{\longrightarrow \: \dfrac{40,000}{1,60,000} \: \times \: 100}$

$\longrightarrow$ 25 %

Gross Profit Ratio = 25%

Therefore, Option (b) 25%

Gross Profit Ratio will be 25%