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Question
Net Profit ₹ 1,60,000; Wages ₹ 80,000 ; Office Expenses ₹ 30,000; Selling Expenses ₹ 10,000; Revenue from Operations ₹ 8,00,000 . Gross Profit Ratio will be ______.
Options
35%
25%
15%
5%
MCQ
Fill in the Blanks
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Solution
Net Profit ₹ 1,60,000; Wages ₹ 80,000 ; Office Expenses ₹ 30,000; Selling Expenses ₹ 10,000; Revenue from Operations ₹ 8,00,000 . Gross Profit Ratio will be 25%.
Explanation:
Operating Expenses = Office Expenses + Selling Expenses
= 30,000 + 10,000
= ₹ 40,000
Gross Profit = Net Profit + Operating Expenses
= 1,60,000 + 40,000
= ₹ 2,00,000
Gross Profit Ratio = `"Gross Profit"/"Revenue from Operations" xx 100`
= `(2,00,000)/(8,00,000) xx 100`
= 25%
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