Question

Revenue from Operations is ₹ 1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?

Options

• ₹ 45,000

• ₹ 36,000

• ₹ 40,000

• ₹ 60,000

Answer 1

₹ 36,000

Explanation:

Let the Cost of Revenue from Operations be `x`

Gross Profit = `25/100 xx x`

Revenue from Operations = Cost of Revenue from Operations + Gross Profit

1,80,000 = `x + 25/100 xx x`

1,80,000 = `125/100 x`

`(1,80,000 xx 100)/125` = `x`

Cost of Revenue from Operations `(x)` = ₹ 1,44,000

Gross Profit = `25/100 xx 1,44,000`

= ₹ 36,000