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Question
A company’s revenue from operations are ₹ 20,00,000; cost of revenue from operations is ₹ 14,00,000 and indirect expenses are ₹ 2,00,000. What is the amount of gross profit?
Options
₹ 18,00,000
₹ 4,00,000
₹ 8,00,000
₹ 6,00,000
MCQ
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Solution
₹ 6,00,000
Explanation:
Given:
Revenue from operations = ₹ 20,00,000
Cost of revenue from operations = ₹ 14,00,000
Gross profit = Revenue from operations − Cost of revenue from operations
= ₹ 20,00,000 − ₹ 14,00,000
= ₹ 6,00,000
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