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Question
On the basis of following data, a Company’s Gross Profit Ratio will be:
Net Profit ₹ 80,000; Wages ₹ 10,000; Office Expenses ₹ 30,000; Selling Expenses ₹ 20,000; Total Revenue from Operations ₹ 5,00,000.
Options
28%
26%
4%
6%
MCQ
Fill in the Blanks
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Solution
26%
Explanation:
Gross Profit Ratio = `"Gross Profit"/"Revenue from Operations" xx 100`
Gross Profit = Net Profit + Office Expenses + Selling Expenses
= 80,000 + 30,000 + 20,000
= ₹ 1,30,000
Gross Profit Ratio = `(1,30,000)/(5,00,000) xx 100`
= 26%
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