1.

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.

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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