Calculate Gross Profit Ratio :Sales ₹ 9,00,000, Gross profit ratio 2

1.	Calculate Gross Profit Ratio :Sales ₹ 9,00,000, Gross profit ratio 20% on cost.
Answer» Gross profit is 20% on cost. Goods costing ₹ 100 must have been sold for ₹ 120. Hence, if sales is ₹ 120, gross profit is ₹ 20. If sales is ₹ 9,00,000 then Gross profit =? Gross profit = 9,00,000 × \(\frac{20}{100}\) = ₹ 1,50,000 Gross profit ratio = \(\frac{Gross\,profit}{Net\,sales}\times100\) = \(\frac{1,50,000}{9,00,000}\times100\) = 16.67%

Calculate Gross Profit Ratio :Sales ₹ 9,00,000, Gross profit ratio 20% on cost.

Answer»

Gross profit is 20% on cost.

Goods costing ₹ 100 must have been sold for ₹ 120.

Hence, if sales is ₹ 120, gross profit is ₹ 20.

If sales is ₹ 9,00,000 then Gross profit =?

Gross profit = 9,00,000 × \(\frac{20}{100}\) = ₹ 1,50,000

Gross profit ratio = \(\frac{Gross\,profit}{Net\,sales}\times100\)

= \(\frac{1,50,000}{9,00,000}\times100\)

= 16.67%