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Sales 300,000 purchases 2,10,000 wages 20,000 closing stock 10,000 more than opening stock what was the percentage profit on cost?
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Calculation of Profit Percentage on Cost

1. Calculate the Cost of Goods Sold (COGS)
- COGS = Opening Stock + Purchases - Closing Stock
- COGS = 0 + 210,000 - 10,000
- COGS = 200,000

2. Calculate the Gross Profit
- Gross Profit = Sales - COGS - Wages
- Gross Profit = 300,000 - 200,000 - 20,000
- Gross Profit = 80,000

3. Calculate the Net Profit
- Net Profit = Gross Profit - Wages
- Net Profit = 80,000 - 20,000
- Net Profit = 60,000

4. Calculate the Profit Percentage on Cost
- Profit Percentage on Cost = (Net Profit / COGS) * 100
- Profit Percentage on Cost = (60,000 / 200,000) * 100
- Profit Percentage on Cost = 30%

Therefore, the percentage profit on cost is 30%. This means that for every rupee spent on producing the goods, the company earned 30 paise as profit. It is essential to calculate profit margins to understand the financial health and performance of the business.
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Sales 300,000 purchases 2,10,000 wages 20,000 closing stock 10,000 more than opening stock what was the percentage profit on cost?
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