Question

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

Net Profit ₹ 40,000; Office Expenses ₹ 20,000; Selling Expenses ₹ 36,000; Total Revenue from Operations ₹ 6,00,000.

पर्याय

• 16%

• 20%

• 6.67%

• 12.5%

Answer 1

16%

Explanation:

Gross Profit = Net Profit + Selling Expenses + Office Expenses

Gross Profit = 40,000 + 36,000 + 20,000

= ₹ 96,000

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

= `(96,000)/(6,00,000)`

= 16%