What will be the revenue from operations if the cost of goods sold is ₹640000 and the gross profit is 20% on sales?
Answer & explanation
Correct answer: option 3
The correct answer is option 3 i.e. ₹800000.
Sales include profit of 20% on sales.
If cost is ₹80 then sales= ₹100
So, revenue from operations = 100/80 X640000
= ₹800000