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Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000?
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Calculate gross profit if rate of gross profit is 20% on sale and cost...
Calculating Gross Profit Given Rate of Gross Profit and Cost of Goods
Definition of Gross Profit: Gross profit is the profit a company makes after deducting the cost of goods sold (COGS) from its revenue.
Formula for Gross Profit:
Gross Profit = Revenue - Cost of Goods Sold (COGS)
Given Information:
- Rate of gross profit = 20%
- Cost of goods = Rs. 120000
Calculating Revenue:
We know that the rate of gross profit is 20%. This means that the gross profit is 20% of the revenue. Mathematically,
Gross Profit = 20% of Revenue
Since we know the cost of goods (COGS) which is Rs. 120000, we can use the formula for COGS:
COGS = Revenue - Gross Profit
Rearranging the above formula, we get:
Revenue = COGS + Gross Profit
Substituting the values we get:
Revenue = Rs. 120000 + (20% x Revenue)
Now we can solve for Revenue:
Revenue - 20% x Revenue = Rs. 120000
0.8 x Revenue = Rs. 120000
Revenue = Rs. 150000
Calculating Gross Profit:
Using the formula for gross profit:
Gross Profit = Revenue - COGS
Substituting the values we get:
Gross Profit = Rs. 150000 - Rs. 120000
Gross Profit = Rs. 30000
Conclusion:
The gross profit is Rs. 30000 if the rate of gross profit is 20% on sale and the cost of goods is Rs. 120000.
Community Answer
Calculate gross profit if rate of gross profit is 20% on sale and cost...
Calculation of Gross Profit:-
[(120000÷80)*100] -120000 = 30000
[(120000÷80)*100] -120000 = 30000
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Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000?
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Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000?.
Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate gross profit if rate of gross profit is 20% on sale and cost of goods is r.s 120000?.
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