Question

If sales amount to Rs.2,40,000 and Gross Profit is Rs.60,000, what would be the gross profit ratio?

Answer 1

Answer:

Gross profit Ratio = Gross profit / net sales*100

= 60000/240000*100=25%

Answer 2

Gross Profit Ratio will be 25%

Explanation:

Given :

• Sales amount = Rs. 2,40,000
• Gross Profit is Rs. 60,000

To find :

• Gross Profit Ratio

Solution :

Gross Profit Ratio = Gross Profit / Net Sales × 100

★ Gross Profit Ratio =

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

$\sf{\longrightarrow \: \dfrac{60,000}{2,40,000} \: \times \: 100}$

$\longrightarrow$ 0.25 × 100

$\longrightarrow$ 0.25 × 100 = 25

$\longrightarrow$ 25 %

Gross Profit Ratio = 25%

Therefore, Gross Profit Ratio will be 25%