What is the gross profit of the firm


Problem 1: AVC held on average inventory of finished goods of Rs. 40,000 (CP) with an inventory turnover ratio of 5. If he makes a gross profit of 25% on the cost of goods sold. What are his total sales during 2006-07

a) Rs. 2,00,000

b) Rs. 2,40,000

c) Rs. 2,50,000

d) Rs. 3,00,000

Problem 2: YZ held an average inventory of finished goods of Rs. 50,000 (CP) with inventory turnover ratios of 5. If he makes a gross profit of 25% on the cost of goods sold. What are the total sales during 2006-07

a) Rs. 2,39,000

b) Rs. 2,48,000

c) Rs. 2,59,900

d) Rs. 3,12,500

Problem 3: XYZ held an average inventory of finished goods of Rs. 40,000 (CP) with an inventory turnover ratio of 5. If he makes gross profit of 25% on the cost of goods sold. What is the Gross profit of the firm during 2006-07

a) Rs. 53,900

b) Rs. 48,000

c) Rs. 59,900

d) Rs. 50,000

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