Question

If sales are Rs. 6,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be ___________.

• A. Rs. 6,000
• B. Rs. 4,500
• C. Rs. 4,800
• D. None of these

Answer 1

The correct option is C Rs. 4,800

Sales = 6,000

Gross Profit = 25% of Cost

Cost 100

(+) Profit 25

_______ _____

Sales 125

Hence, cost of goods sold = 6,000 X 100/125 = 4,800