What will be the gross profit ratio if, total sales is Rs 2,60,000, cost

Discussion Forum : Accounting Ratios

Question -

What will be the gross profit ratio if, total sales is Rs 2,60,000, cost of net goods sold is Rs 2,00,000 and Sales return is Rs 10,000?

Options:

A . 13%

B . 28%

C . 26%

D . 20%

Answer: Option D
:
D

Net Sales = Rs 2,60,000 - Rs 10,000 = Rs 2,50,000
Cost of goods sold = Rs 2,00,000
Gross Profits = Rs 2,50,000 - Rs 2,00,000 = Rs 50,000
$G r o s s p r o f i t r a t i o = \frac{50, 000}{2, 50, 000} \times 100 = 20 %$

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