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In the three department of a business,the rate of gross profit is same, and the ratio of sales in this department is 5:3:2.what is ratio of the cost price to sales of these department?
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In the three department of a business,the rate of gross profit is same...
Ratio of Cost Price to Sales in Three Departments


Given Information:


  • There are three departments in a business

  • The rate of gross profit is the same in all three departments

  • The ratio of sales in these departments is 5:3:2



Calculating the Ratio of Cost Price to Sales:

Let us assume that the cost price of each department is CP1, CP2, and CP3 respectively, and their sales are S1, S2, and S3 respectively. Given that the rate of gross profit is the same for all departments, we can say:



  • Gross Profit (GP) = Selling Price (SP) - Cost Price (CP)

  • Rate of Gross Profit (GP%) = (GP / CP) x 100



Since the rate of gross profit is the same for all departments, we can write:


  • (GP1 / CP1) x 100 = (GP2 / CP2) x 100 = (GP3 / CP3) x 100



Now, let us assume that the rate of gross profit is x%. This means:



  • GP1 = x% of CP1

  • GP2 = x% of CP2

  • GP3 = x% of CP3



We also know that the ratio of sales in these departments is 5:3:2. This means:



  • S1 : S2 : S3 = 5 : 3 : 2



We can write:



  • S1 = 5x, S2 = 3x, S3 = 2x (where x is a constant)



Now, we can calculate the ratio of cost price to sales:



  • CP1 / S1 = (CP1 / (GP1 + CP1)) = (100 / (100 + x))

  • CP2 / S2 = (CP2 / (GP2 + CP2)) = (100 / (100 + x))

  • CP3 / S3 = (CP3 / (GP3 + CP3)) = (100 / (100 + x))



Therefore, the ratio of cost price to sales in these departments is:



  • CP1 : S1 = 100 : (100 + x)

  • CP2 : S2 = 100 : (100 + x)

  • CP3 : S3 = 100 : (100 + x)



Hence, the ratio of cost price to sales in these departments is 100 : (100 + x) for all three departments.
Community Answer
In the three department of a business,the rate of gross profit is same...
Cost of good sold=sale or revenue from operation-gross profit
1:1:1this is answer
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In the three department of a business,the rate of gross profit is same, and the ratio of sales in this department is 5:3:2.what is ratio of the cost price to sales of these department? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the three department of a business,the rate of gross profit is same, and the ratio of sales in this department is 5:3:2.what is ratio of the cost price to sales of these department? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the three department of a business,the rate of gross profit is same, and the ratio of sales in this department is 5:3:2.what is ratio of the cost price to sales of these department?.
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