Based on following data related to Ambe limited, Jaipur, Answer question.
|
|
₹ |
|
Revenue from operations |
8,40,000 |
|
Cost of revenue from operations |
4,20,000 |
|
Selling Expenses |
80,000 |
|
Administrative Expenses |
40,000 |
|
Equity share capital |
1,00,000 |
|
8% preference share capital |
50,000 |
|
10% debentures |
1,00,000 |
|
Profit after Tax |
1,74,000 |
|
Tax Rate |
40% |
Determine Gross Profit Ratio.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - 50%.
Gross Profit Ratio = Gross Profit/Net Revenue from Operations × 100
= 4,20,000/8,40,000 x 100
= 1/2 x 100
= 50%
Gross profit = Revenue from operations - Cost of revenue from operations
= 8,40,000 - 4,20,000
= 4,20, 000