Question

On the basis of following data, a Company’s Gross Profit Ratio will be:

Net Profit ₹ 80,000; Wages ₹ 10,000; Office Expenses ₹ 30,000; Selling Expenses ₹ 20,000; Total Revenue from Operations ₹ 5,00,000.

विकल्प

• 28%

• 26%

• 4%

• 6%

Answer 1

26%

Explanation:

Gross Profit Ratio = `"Gross Profit"/"Revenue from Operations" xx 100`

Gross Profit = Net Profit + Office Expenses + Selling Expenses

= 80,000 + 30,000 + 20,000

= ₹ 1,30,000

Gross Profit Ratio = `(1,30,000)/(5,00,000) xx 100`

= 26%