Gross Profit Ratio = Gross Profit / Net Revenue from operations x 100
Gross Profit = Revenue from operations - Cost of Revenue from operations
Average Inventory = 80,000 + 10,00,000 / 2 = 90,000
Inventory Turnover Ratio = 8
∴ Cost of revenue from operations = 8 x 90,000
= 7, 20, 000
Gross Profit = 9,00,000 - 7,20,000
= Rs 1,80,000
Gross profit Ratio = 1,80,00 / 9,00,000 x 100 = 20%