If Gross Profit is 25% of Cost of Goods Sold, and Sales is Rs.80000/- Cost of Goods Sold is Rs:
Sales equal cost of goods sold plus gross profit. With gross profit equal to 25% of cost, sales are 1.25 times cost, so cost of goods sold = 80,000 / 1.25 = Rs.64,000.
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If Gross Profit is 25% of Cost of Goods Sold, and Sales is Rs.80000/- Cost of Goods Sold is Rs:
Answer and explanation
Correct answer A
Sales equal cost of goods sold plus gross profit. With gross profit equal to 25% of cost, sales are 1.25 times cost, so cost of goods sold = 80,000 / 1.25 = Rs.64,000.
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Kerala SET (LBS Centre)