Gross Profit Calculation:


To calculate the gross profit, we need to know the cost of goods sold (COGS) and the net sales.


Given:
Net Sales = ₹2,400,000
Gross Profit = 33 1/3% on Sales


To calculate the gross profit, we can use the following formula:
Gross Profit = Net Sales - COGS


Therefore, we need to determine the cost of goods sold (COGS) first.

Calculating Cost of Goods Sold (COGS):


The cost of goods sold (COGS) represents the direct costs associated with producing or purchasing the goods that were sold during a specific period.


COGS can be calculated using the following formula:
COGS = Net Sales - Gross Profit


Given:
Net Sales = ₹2,400,000
Gross Profit = 33 1/3% on Sales


To calculate COGS, we substitute the given values into the formula:
COGS = ₹2,400,000 - (33 1/3% x ₹2,400,000)

Solving for COGS:


First, convert the percentage to a decimal by dividing it by 100:
33 1/3% = 33.33/100 = 0.3333


Next, multiply the net sales by the decimal value of the gross profit percentage:
COGS = ₹2,400,000 - (0.3333 x ₹2,400,000)

Simplifying the Equation:


To simplify the equation, we can factor out the common term of ₹2,400,000:
COGS = ₹2,400,000(1 - 0.3333)

Calculating COGS:


Now, subtract the decimal value from 1 and multiply it by the net sales:
COGS = ₹2,400,000(0.6667)

Simplifying the Equation:


Multiply ₹2,400,000 by 0.6667 to calculate the cost of goods sold:
COGS = ₹1,599,996.8

Answer:


The gross profit is ₹2,400,000 and the cost of goods sold (COGS) is ₹1,599,996.8.

COST OF GOODS SOLD: 1600000
GROSS PROFIT: 800000