Read the following hypothetical text and answer the given questions: | |||||||||||||||
The motto of Tharma Ltd.' a company engaged in the manufacturing of low-cost generic medicines, is 'Healthy India'. Its management and employees are hardworking honest and motivate The net profit of the company doubled during the year ended 31st March, 2020. Encouraged by its performance, the company decided to give bonus to all employees at double the rate than last year. | |||||||||||||||
Statement of Profit and Loss for the year ended 31st March. 2020
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Based on the above information you are required to answer the following questions: | |||||||||||||||
Gross profit ratio for the year 2020 will be: |
A) 41.25%
B) 40.25%
C) 42.25%
D) 43.25%
Correct Answer: A
Solution :
[a] 41.25% |
Hint: Gross Profit = Revenue from Operations - Cost of Revenue from Operations |
= Rs. 20,00,000 - Rs. 11,75,000 = Rs. 8,25,000 |
\[\operatorname{Gross} Profit Ratio=\frac{Gross Profit}{Revenue from Operations}\times 100\] |
=\[\frac{8,25,000}{~20,00,000}\times 100\]=41.25% |
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