Advertisements
Advertisements
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.
Options
16%
20%
6.67%
12.5%
MCQ
Fill in the Blanks
Advertisements
Solution
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%
shaalaa.com
Is there an error in this question or solution?
