If there is Revenue from Operation Rs. 1,20,000 and gross profit is 20\% of cost, then the amount of gross profit will be : - Accountancy MCQ CUET Accountancy 2022 23 Aug Shift 2 PYQs 2026 | ExamTest.live

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If there is Revenue from Operation Rs. 1, 20, 000 and gross profit is 20% of cost, then the amount of gross profit will be :

Solution & Step-by-step Explanation

Let the Cost of Revenue from Operations be x .Gross Profit = 20% of Cost = 0.2 x Revenue from Operations = Cost + Gross Profit 1, 20, 000 = x + 0.2 x 1.2 x = 1, 20, 000 x = \frac{1 , 20 , 000}{1.2} = 1, 00, 000 Gross Profit = 0.2 \times 1, 00, 000 = Rs. 20, 000 .

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If there is Revenue from Operation Rs. 1, 20, 000 and gross profit is 20% of cost, then the amount of gross profit will be :

Rs. 24, 000

Rs. 48, 000

Rs. 20, 000

Rs. 40, 000

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