Question

If Revenue from Operations is ₹ 1,60,000 and Gross Profit is ₹ 40,000, Gross Profit Ratio will bе ______.

Options

• 30%

• 25%

• 40%

• 50%.

Answer 1

If Revenue from Operations is ₹ 1,60,000 and Gross Profit is ₹ 40,000, Gross Profit Ratio will bе 25%.

Explanation:

Given:

Revenue from Operations = ₹ 1,60,000

Gross Profit = ₹ 40,000

The Gross Profit Ratio formula is:
$$\begin{aligned} \text{Gross Profit Ratio} &= \frac{\text{Gross Profit}}{\text{Revenue from Operations}} \times 100 \\ &= \frac{40,000}{1,60,000} \times 100 = \mathbf{25\%} \end{aligned}$$