136 :- Compute Gross Profit Ratio from the following information :
Revenue from Operations,I.e, Net Sales = Rs 4,00,000; Gross Profit 25% on Cost.
Solution :-
Gross Profit = Revenue from Operation – Cost of Revenue from Operation
25/100x = 4,00,000 – x
1/4 x + x = 4,00,000
5x/4 = 4,00,000
x = 3,20,000
Cost of Revenue from operation = Rs 3,20,000
Gross Profit = Revenue from Operation – Cost of Revenue from Operation
= 4,00,000 – 3,20,000
= Rs 80,000
Gross Profit Ratio = Gross Profit/Revenue from Operation x 100
= 80,000/4,00,000 x 100
= 20%