Calculate gross profit if rate of gross profit is $20 %$ on sales and cost of goods is Rs. $1, 20, 000$ .

Rs.

24, 000

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Rs.

30, 000

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Rs.

20, 000

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None of these

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Solution

The correct option is C Rs. $30, 000$
If gross profit is $20 %$ on sales then it would $25 %$ on cost.
So,
Gross profit = Cost of goods sold x Gross profit margin on cost
= $120000$ x $25 / 100$
= $R s . 30000$

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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.

The correct option is C Rs. 30,000If gross profit is 20% on sales then it would 25% on cost.So,Gross profit = Cost of goods sold x Gross profit margin on cost = 120000 x 25/100 = Rs.30000

Calculate gross profit if rate of gross profit is $20 %$ on sales and cost of goods is Rs. $1, 20, 000$ .

The correct option is C Rs. $30, 000$
If gross profit is $20 %$ on sales then it would $25 %$ on cost.
So,
Gross profit = Cost of goods sold x Gross profit margin on cost
= $120000$ x $25 / 100$
= $R s . 30000$