Revenue from operations is Rs1 80 000 Rate of Gross Profit is 25 on cost What will be the Gross Prof...........

Revenue from operations is Rs1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?

Rs45,000

Rs36,000

Rs40,000

Rs60,000

- Revenue from operations is given as Rs 1,80,000.

- The Gross Profit is 25% on the cost, not on the sales or revenue.

- To find the Gross Profit, first understand the relationship between cost, revenue, and profit:

- If Gross Profit is 25% of cost, then cost = cost price (CP) = Rs X.

- Gross Profit (GP) = 25% of X = 0.25X.

- Revenue = Cost + GP, so Rs 1,80,000 = X + 0.25X = 1.25X.

- This implies X = Rs 1,80,000 / 1.25 = Rs 1,44,000.

- Gross Profit = Revenue - Cost = Rs 1,80,000 - Rs 1,44,000 = Rs 36,000.

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