What is the value of the gross profit ratio? (A) 1 : 12 (B) 1 : 6 (C) 1 : 4 (D) 1 : 1.33 - HSC - SSCE Business Studies - Question 11 - 2005 - Paper 1

The gross profit ratio is calculated by dividing the gross profit by the revenue. It can be represented as:

$ext{Gross Profit Ratio} = \frac{\text{Gross Profit}}{\text{Revenue}}$

Assuming typical values for gross profit and revenue:

• Let the gross profit be represented as G and revenue as R.
• If G is given or can be calculated, then for example, if G = 1 unit and R = 4 units, the ratio becomes:

$\text{Gross Profit Ratio} = \frac{1}{4} = 0.25$

Thus, the gross profit ratio can be expressed as 1 : 4.