Question

Gross Profit Ratio of a company is 25%. Cost of revenue from operations are \(\frac{3}{4}\)th of revenue from operations. If revenue from operations is ₹60,00,000, the Gross Profit of the company will be:

• A. ₹25,00,000
• B. ₹45,00,000
• C. ₹15,00,000
• D. ₹11,25,000

Hint:

Gross Profit Ratio = Gross Profit ÷ Revenue × 100. If cost is given as fraction of revenue, use the remainder as gross profit.

Answer 1

The Correct Option is C

Step 1: Use the Gross Profit Ratio formula: \[ \text{Gross Profit Ratio} = \frac{\text{Gross Profit}}{\text{Revenue from Operations}} \times 100 \] Given: Revenue = ₹60,00,000 and Gross Profit Ratio = 25% \[ \text{Gross Profit} = 25% \text{ of } 60,00,000 = \frac{25}{100} \times 60,00,000 = ₹15,00,000 \]