If net loss is ₹5000 operating expenses is ₹14500 and sales is ₹25000 ...
Solution:
Given,
Net Loss = ₹5000
Operating Expenses = ₹14500
Sales = ₹25000
To find,
Gross Profit
Calculation:
Gross Profit = Sales - Cost of Goods Sold (COGS)
COGS = Operating Expenses + Net Loss
COGS = ₹14500 + ₹5000
COGS = ₹19500
Gross Profit = ₹25000 - ₹19500
Gross Profit = ₹5500
Therefore, the Gross Profit is ₹5500.
Explanation:
Gross Profit is the profit made by a company after deducting the cost of goods sold (COGS) from the revenue generated from sales. It is an important metric that shows how efficiently a company is utilizing its resources to manufacture and sell goods.
In this question, we are given the net loss, operating expenses, and sales of a company. To calculate the gross profit, we first need to calculate the cost of goods sold (COGS). COGS is the cost that a company incurs to manufacture and sell goods.
To calculate COGS, we add the net loss and operating expenses. This is because net loss is also an expense that the company incurs.
Once we have calculated COGS, we can subtract it from the sales to get the gross profit. In this case, the gross profit is ₹5500.
Therefore, this is how we calculate gross profit using the given information.
If net loss is ₹5000 operating expenses is ₹14500 and sales is ₹25000 ...
Sale 25000
-loss 5000
exps 14500
=5500 cash flow
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.