CA Foundation Exam  >  CA Foundation Questions  >  In the three department of a business,the rat... Start Learning for Free
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?
Most Upvoted Answer
In the three department of a business,the rate of gross profit is same...
Solution:

Given:
- The rate of gross profit is same in all departments.
- The ratio of sales in these departments is 5:3:2.

To find:
- The ratio of cost price to sales of these departments.

Explanation:

Let us assume that the rate of gross profit in each department is x%.

Therefore, the cost price of each department will be (100 - x)% of the selling price.

Let the sales in the three departments be 5x, 3x, and 2x respectively.

Therefore, the total sales of the business = 5x + 3x + 2x = 10x.

Now, let us calculate the gross profit in each department.

Gross profit in 1st department = 5x * (x/100) = 5x^2/100
Gross profit in 2nd department = 3x * (x/100) = 3x^2/100
Gross profit in 3rd department = 2x * (x/100) = 2x^2/100

Therefore, the total gross profit = (5x^2/100) + (3x^2/100) + (2x^2/100) = 10x^2/100 = x^2/10.

Now, let us calculate the cost price of each department.

Cost price of 1st department = (100 - x)% of 5x = (100 - x)*5x/100 = 5x - (x/100)*5x = (95/100)*5x = 4.75x.
Cost price of 2nd department = (100 - x)% of 3x = (100 - x)*3x/100 = 3x - (x/100)*3x = (97/100)*3x = 2.91x.
Cost price of 3rd department = (100 - x)% of 2x = (100 - x)*2x/100 = 2x - (x/100)*2x = (98/100)*2x = 1.96x.

Therefore, the total cost price = 4.75x + 2.91x + 1.96x = 9.62x.

Now, let us calculate the ratio of cost price to sales of these departments.

Ratio of cost price to sales of 1st department = 4.75x/5x = 0.95.
Ratio of cost price to sales of 2nd department = 2.91x/3x = 0.97.
Ratio of cost price to sales of 3rd department = 1.96x/2x = 0.98.

Therefore, the ratio of cost price to sales of these departments is 0.95 : 0.97 : 0.98, which can be simplified as 95 : 97 : 98.

Final Answer:
The ratio of cost price to sales of these departments is 95 : 97 : 98.
Explore Courses for CA Foundation exam
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?
Question Description
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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of 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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev