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Net Profit Ratio

Net profit ra...

Question

Net profit ratio is calculated by ___

$(\frac{Gross Profit}{Gross Sales}) \times 100$

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$(\frac{Gross Profit}{Net Sales}) \times 100$

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$(\frac{Net Profit}{Net Sales}) \times 100$

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None of these

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Solution

The correct option is C
$(\frac{Net Profit}{Net Sales}) \times 100$

$(\frac{Net Profit}{Net Sales}) \times 100$

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