Question

Revenue from operations is 1,80,000, Rate of Gross profit is 25% on cost. What will be the Gross Profit?​

Answer 1

Explanation:

Solution :

• Revenue from operations is 1,80,000
• Rate of Gross profit is 25% on cost
• Gross Profit = ??

Revenue from operations = 1,80,000

Gross profit = 25% on cost

Let,

Cost = 100

Gross profit = 25% on cost

G.P. = 25

Revenue from operations = Cost + G.P.

125 = 100 + 25

Gross Profit =

(25/125) × 1,80,000

36,000

Gross Profit = 36,000

OR :

Gross profit = 25% on cost

25/100 = 1/4

means,

Gross profit = 20 % on sales

20/100 = 1/5

Gross profit = 1,80,000 × (20/100)

= 36,000

Therefore, Gross Profit = 36,000