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If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales less return is Rs. 1, 60,000 and purchases is Rs. 1,10,00. The Gross Profit margin on Sales would be?
  • a)
    35%
  • b)
    40%
  • c)
    30%
  • d)
    45%
Correct answer is option 'B'. Can you explain this answer?
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If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales les...
Calculation of Gross Profit Margin on Sales

Opening Stock = Rs. 69,500
Closing Stock = Rs. 83,500
Sales less Return = Rs. 1,60,000
Purchases = Rs. 1,10,000

Calculation of Cost of Goods Sold (COGS)

COGS = Opening Stock + Purchases - Closing Stock
COGS = Rs. 69,500 + Rs. 1,10,000 - Rs. 83,500
COGS = Rs. 96,000

Calculation of Gross Profit

Gross Profit = Sales less Return - COGS
Gross Profit = Rs. 1,60,000 - Rs. 96,000
Gross Profit = Rs. 64,000

Calculation of Gross Profit Margin on Sales

Gross Profit Margin on Sales = (Gross Profit ÷ Sales less Return) × 100
Gross Profit Margin on Sales = (Rs. 64,000 ÷ Rs. 1,60,000) × 100
Gross Profit Margin on Sales = 40%

Therefore, the Gross Profit Margin on Sales is 40%.
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If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales les...
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If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales less return is Rs. 1, 60,000 and purchases is Rs. 1,10,00. The Gross Profit margin on Sales would be?a)35%b)40%c)30%d)45%Correct answer is option 'B'. Can you explain this answer?
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If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales less return is Rs. 1, 60,000 and purchases is Rs. 1,10,00. The Gross Profit margin on Sales would be?a)35%b)40%c)30%d)45%Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales less return is Rs. 1, 60,000 and purchases is Rs. 1,10,00. The Gross Profit margin on Sales would be?a)35%b)40%c)30%d)45%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If opening stock is Rs. 69,500, closing stock is Rs. 83,500, sales less return is Rs. 1, 60,000 and purchases is Rs. 1,10,00. The Gross Profit margin on Sales would be?a)35%b)40%c)30%d)45%Correct answer is option 'B'. Can you explain this answer?.
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