Q51146 Om enterprises has earned a gross profit of 6,00,000 in the first quarter. Calculate the gross profit ratio if the corresponding sales amounted to a value of 30,00,000. What does it imply?

Based on Annamalai University Assignment Solution and others

Solution:

Gross Profit Ratio

= Gross Profit/ Sales X 100

= 6,00,000/ 30,00,000 x 100

=  20 : 1

The ratio implies that the firm has earned good profits out of sales in the first quarter.

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