Gross profit is 20% on cost.
Goods costing ₹ 100 must have been sold for ₹ 120.
Hence, if sales is ₹ 120, gross profit is ₹ 20.
If sales is ₹ 9,00,000 then Gross profit =?
Gross profit = 9,00,000 × \(\frac{20}{100}\) = ₹ 1,50,000
Gross profit ratio = \(\frac{Gross\,profit}{Net\,sales}\times100\)
= \(\frac{1,50,000}{9,00,000}\times100\)
= 16.67%
