Question

TASK 1-Given Sales is 1,20,000 and Gross Profit is 30,000, the gross profit ratio is (a).24%, (b). 25%, (c).40%, (d).44% (e). None ​

Answer 1

Answer:

e) none

Explanation:

coz 120000 ÷ 30000 = 4 then it should be 4 %

Answer 2

Concept:

The gross profit ratio is defined as the ratio of the gross profit to the net sales in a given time period.

Answer:

The correct answer is option (b) 25 %.

Given:

Net sales, N = Rs. 1,20,000

Gross profit, P = Rs. 30,000

Find:

The gross profit ratio.

Solution:

Gross profit ratio is given by,

Gross profit ratio = (Gross profit/Net sales) × 100%

Now, we have

Gross profit ratio = (P/N)×100%

                            = (30,000/1,20,000) × 100 %

                            = 1/4 × 100 %

                            = 25%

The gross profit ratio is 25 %.

Hence, the correct answer is option (b) 25%.

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