Question : What will the gross profit be if the sale is Rs.8,00,000 and the gross profit ratio is 20% of the sale?
Option 1: Rs.1,60,000
Option 2: Rs.1,33,333
Option 3: Rs.2,00,000
Option 4: None of the above
Correct Answer: Rs.1,60,000
Solution :
Sale is 8,00,000 and the gross profit ratio is 20%
Gross profit = Sale * GP rate = 8,00,000*20%=160000
Hence option 1 is the correct answer.