Question

Q. 103. On the basis of following data, a Company's Gross Profit Ratio will be: Net Profit 340,000; Office Expenses 320,000; Selling Expenses 336,000, Total revenue from operations 6,00,000. (A) 16% (B) 20% (C) 6.67% (D) 12.5%​

Answer 1

Answer:

Bro, I believe your question is wrong..check your Revenue from operations once again...I think it is 60 lac instead of 6 lac. If it is 60 lac then GP ratio will be 16.6% and if it is 6 lac then GP ratio will be 166%

Explanation:

I will tell you the concept of GP ratio

GP ratio = (Gross profit/Revenue from Operation)* 100

Now we have given Net profit.. if you want to calculate Gross profit from Net profit then you have to add all the indirect expenses and have to less all the indirect incomes

so in this case Gross profit will be 996000(340000+320000+336000)