Question : The sale is Rs.2,50,000, and the gross profit margin is 25% of costs. How much will the gross profit be?
Option 1: Rs.75,000
Option 2: Rs.50,000
Option 3: Rs.57,500
Option 4: None of the above
Correct Answer: Rs.50,000
Solution :
Sale = 2,50,000
Gross Profit = 2,50,000*25/125=50,000
Hence option 2 is the correct answer