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Calculate gross profit ratio from the following: revenue from operations Rs. 5,00,000; cost of revenue from operations Rs. 4,20,000; and purchases Rs. 3,60,000. |
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Answer» Gross profit Ratio = (Gross profit)/(Revenue from operations) x 100 Gross profit Revenue from operation – cost of revenue from operation = Rs. 5,00,000 – Rs. 4,20,000 = Rs. 80,000 Gross profit ratio = 80000/500000 x 100 = 16% |
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