Question

None of the above
(2)
If Gross margin is 25% on Cost and sales is Rs. 21,00,000 the gross profit
would be
(a) 6.25,000
(b) 4,20,000
(c) 5,25,000
(d) None of the above​

Answer 1

Answer:

(b) 4,20,000

Step-by-step explanation:

if gross margin is 25% on cost.. that means cost is 80% of sales.

therefore, cost = 21,00,000 *80% = 16,80,000

Hence, gross profit =16,80,000*25%=4,20,000.