135 :- Compute Gross Profit Ratio from the following information :
Cost of Revenue from Operations (Cost of Goods Sold) Rs 5,40,000; Revenue from Operations (Net Sales) Rs 6,00,000.
Solution :-
Gross Profit = Revenue from Operations – Cost of Revenue from Operations
= 6,00,000 – 5,40,000
= Rs 60,000
Gross Profit Ratio = [Gross Profit/Revenue from Operations] x 100
= [60,000/6,00,000] x 100
= 10%