A company’s net sales are ₹15,00,000; the cost of sales is ₹10,00,000 and indirect expenses are ₹3,00,000, then what is the amount of gross profit?

₹5,00,000

The correct answer is option 3- ₹5,00,000.

Gross profit = Net sales- COGS
                   = 15,00,000 - 10,00,000
                   = 5,00,000

* Indirect expenses are not considered while calculating gross profit. It is subtracted while calculating net profit.