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    Question

    Calculate the Gross Profit Ratio based on the following

    data: Β·Β Β Β Β Β Β Β  Total Sales: β‚Ή3,60,000 Β·Β Β Β Β Β Β Β  Cost of Goods Sold (COGS): β‚Ή3,00,000; Β·Β Β Β Β Β Β Β  Sales Return: β‚Ή20,000.
    A 17.65% Correct Answer Incorrect Answer
    B 11.11% Correct Answer Incorrect Answer
    C 16.12% Correct Answer Incorrect Answer
    D 11.76% Correct Answer Incorrect Answer
    E 16.67% Correct Answer Incorrect Answer

    Solution

    Β  Net Sales = π‘‡π‘œπ‘‘π‘Žπ‘™ π‘†π‘Žπ‘™π‘’π‘  βˆ’ π‘†π‘Žπ‘™π‘’π‘  π‘…π‘’π‘‘π‘’π‘Ÿπ‘› = 3,60,000βˆ’20,000=3,40,000 Β  Gross Profit = Net π‘†π‘Žπ‘™π‘’π‘  βˆ’ 𝐢𝑂𝐺𝑆 = 3,40,000βˆ’3,00,000=40,000 Β  Thus, Gross Profit Margin = ( πΊπ‘Ÿπ‘œπ‘ π‘  π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ / 𝑁𝑒𝑑 π‘†π‘Žπ‘™π‘’π‘  )Γ—100 =Β  (40,000/3,40,000) Γ— 100 = 𝟏𝟏 . πŸ•πŸ” % Β 

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