Question

if selling price is fixed 25% above the cost the gross profit ratio is​

Answer 1

Answer:

Examle cost 100+ selling margine 25%=125, revese Profit 25/ sales value 125 =1/5=20%

Answer 2

Answer:

Gross profit ratio = 20%

Step-by-step explanation:

Given,

The selling price is 25% above the cost price

To find,

Gross profit ratio

Recall the formula

Gross profit ratio = $\frac{Revenue - \ cost \ of \ the\ product}{Revenue}$ ×100%

Solution:

Let us take the cost price be 100

Since selling price 25% above the cost price

Selling price  = 125

∴Revenue = 125

We have gross profit ratio =  $\frac{Revenue - \ cost \ of \ the\ product}{Revenue}$ ×100%

= $\frac{125 - 100}{125}$×100%

= $\frac{25}{125}$×100%

= 20%

Gross profit ratio = 20%

#SPJ3