Calculate Gross profit ratio from following information-
Revenue from operations = 3,40,000
Cost of revenue from operations = 1,20,000
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 64.71%.
Gross profit = Revenue from operations (3,40,000) - Cost of revenue from operations (1,20,000)
= 2,20,000
Gross Profit Ratio = Gross Profit / Revenue from operations × 100
= 2,20,000/3,40,000 x 100
= 64.71 %