Question

If Revenue from Operations is ₹ 2,50,000 and Gross Profit Ratio is 25%, the amount of Gross Profit will bе ______.

Options

• ₹ 60,000

• ₹ 62,500

• ₹ 80,000

• ₹ 50,000

Answer 1

If Revenue from Operations is ₹ 2,50,000 and Gross Profit Ratio is 25%, the amount of Gross Profit will bе ₹ 62,500.

Explanation:

Given:

Revenue from Operations = ₹ 2,50,000

Gross Profit Ratio = 25%

The Gross Profit amount is calculated as a percentage of the Revenue from Operations:
$$\begin{aligned} \text{Gross Profit} &= \text{Revenue from Operations} \times \text{Gross Profit Ratio} \\ &= 2,50,000 \times \frac{25}{100} \\ &= {₹\ 62,500} \end{aligned}$$