Question

What will be the amount of
Gross Profit, if revenue from
operations are 76,00,000 and
Gross Profit is 20% of cost?​

Answer 1

let's solve it using unitary method.

when cost is ,say, 100 rs then gross profit is 20% of it i.e., 20 rs. and consequently the revenue from operations is 100+20=120.

so we can say ,

when revenue from operations is 120 then gross profit is 20

when revenue from operations is 76,00,000 then gross profit is 20 ×76,00,000÷ 120= 12,66,667

Answer 2

The amount of Gross Profit Rs.12,66,666.67

Explanation:

Let,

Cost = 100

G.P. = 20% on cost

So,

$\longrightarrow$ 100 × 20/100

$\longrightarrow$ 20

Net Sales = 100 + 20

Net Sales = 120

G.P. on cost 20%

G.P. on Sales =

$\longrightarrow$ 20 / 120 × 7,600,000

$\longrightarrow$ 12,66,666.6666667

Gross Profit = 1,266,666.67

Therefore, the amount of Gross Profit Rs.12,66,666.67

★ Verification :

$\longrightarrow$ 76,00,000 - 1,266,666.67

$\longrightarrow$ 6,333,333.33 (Cost Of Goods Sold)

20% on cost = 12,66,666.67

$\longrightarrow$ G.P. = 12,66,666.67