Question

Net profit Rs 80,000; Wages Rs 10,000; Office expenses Rs 30,000; Selling expenses Rs 20,000; Total revenue from operations Rs 5,00,000. What will be the Gross profit ratio?

(a) 28 %
(b) 26%
(c) 4 %
(d) 6 %
with claculation​

Answer 1

Answer:

I think so it's answer was(b)26%

Answer 2

(b) 26%

Explanation:

Gross profit is the left profit after subtracting all direct expenses from manufacturing process. gross profit ratio is calculated as, ( gross profit / net sales)*100.

given, sales = Rs.5,00,000

total direct expenses =  office expenses+ selling expenses

                                   =  30,000+20,000 = Rs.50,000

gross profit = net profit + direct expenses

                   = 80,000+50,000 = Rs.1,30,000.

gross profit ratio = ( gross profit / net sales )*100

                            = ( 1,30,000 / 5,00,000 )*100

                            = 26 %