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Calculate gross profit if rate of gross profit is 20% on sales and cost of goods is Rs. 1,20,000:
- a)Rs. 24,000
- b)Rs. 30,000
- c)Rs. 20,000
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
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Calculate gross profit if rate of gross profit is 20% on sales and cos...
Calculation of Gross Profit
Given:
Rate of gross profit = 20%
Cost of goods = Rs. 1,20,000
Formula:
Gross Profit = Sales - Cost of goods sold
Gross Profit Rate = (Gross Profit / Sales) x 100
Calculation:
Let the sales be x
Gross Profit Rate = 20%
Therefore, (Gross Profit / x) x 100 = 20%
Gross Profit = (20/100) x x
Gross Profit = 0.2x
Cost of goods sold = Rs. 1,20,000
Gross Profit = Sales - Cost of goods sold
0.2x = x - 1,20,000
0.2x - x = -1,20,000
-0.8x = -1,20,000
x = -1,20,000 / -0.8
x = Rs. 1,50,000
Gross Profit = 0.2x
= 0.2 x 1,50,000
= Rs. 30,000
Answer:
Therefore, the gross profit is Rs. 30,000 (Option B).
Given:
Rate of gross profit = 20%
Cost of goods = Rs. 1,20,000
Formula:
Gross Profit = Sales - Cost of goods sold
Gross Profit Rate = (Gross Profit / Sales) x 100
Calculation:
Let the sales be x
Gross Profit Rate = 20%
Therefore, (Gross Profit / x) x 100 = 20%
Gross Profit = (20/100) x x
Gross Profit = 0.2x
Cost of goods sold = Rs. 1,20,000
Gross Profit = Sales - Cost of goods sold
0.2x = x - 1,20,000
0.2x - x = -1,20,000
-0.8x = -1,20,000
x = -1,20,000 / -0.8
x = Rs. 1,50,000
Gross Profit = 0.2x
= 0.2 x 1,50,000
= Rs. 30,000
Answer:
Therefore, the gross profit is Rs. 30,000 (Option B).
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Calculate gross profit if rate of gross profit is 20% on sales and cost of goods is Rs. 1,20,000:a)Rs. 24,000b)Rs. 30,000c)Rs. 20,000d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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