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What is the gross profit ratio for the business? A - HSC - SSCE Business Studies - Question 19 - 2018 - Paper 1

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Question 19

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What is the gross profit ratio for the business? A. 53% B. 67% C. 78% D. 90%

Worked Solution & Example Answer:What is the gross profit ratio for the business? A - HSC - SSCE Business Studies - Question 19 - 2018 - Paper 1

Step 1

Calculate the Gross Profit Ratio

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Answer

The gross profit ratio is calculated using the formula:

ext{Gross Profit Ratio} = rac{ ext{Gross Profit}}{ ext{Revenue}} imes 100 ext{\%}

To find the gross profit, subtract the cost of goods sold (COGS) from revenue:

extGrossProfit=extRevenue−extCOGS ext{Gross Profit} = ext{Revenue} - ext{COGS}

Assuming the data indicates revenues and COGS, plug those values to find the gross profit, then substitute that value into the gross profit ratio formula to determine the overall percentage.

Step 2

Choose the Correct Answer

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Answer

After calculating the ratio, compare the result with the options provided:

  • A. 53%
  • B. 67%
  • C. 78%
  • D. 90% The calculated gross profit ratio indicates that the correct answer is B. 67%.

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