A. 1,600
B. 1,500
C. 1,000
D. 1,800
Updated by: Mohammad Ejaz
Total Sales value =2000
Gross Profit =25 % of Sales
= 25/100×2000
= 500 Gross Profit
Cost of Goods = Total Sales – Gross Profit
=2000-500 = 1500
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Total Sales value =2000
Gross Profit =25 % of Sales
= 25/100×2000
= 500 Gross Profit
Cost of Goods = Total Sales – Gross Profit
=2000-500 = 1500
hence the Right option is B
thanks for explanation
If Profit is on cost of sales then
Cost = 100%
Profit=25%
Sales=Cost+ Gross profit
125%=100%+25%
So Cost of Sale is
=2000×100/125
=1600
as base is cost so it should be 100%
A is the right option
Sir 25% profit is on cost not on sale, your calculation is not correct with respect to question statement.
Explanation:
25% on cost=25/125×2000 is 400.
Cost of sold= 2000-400 is 1600.
2000 × 100/125= 1600 here profit is 25% on cost
For 25% profit for 2000 sale
It results 1500
thanks for correction
is it 25% on sale or cost????
1500 is wrong answer
Correct is 1600
Actually 2000 have 100% of cost of goods sold and 25% profit. So
2000÷1.25 = 1600 or 2000÷125×100= 1600 CGS
Reverse calculation
1600×25%= 400 Gross profit
Or 25/125×2000= 400 Gross profit
kindly explain it, how cost 1600 Rs.???
now updated
Correct Answer is 1600!
25/125*2000=400
2000-400=1600
=1600*25%=400
=1600+400=2000
if 25% profit on cost price then correct answer is 1600
if 25% profit on sale price then correct answer is 1500
If cost is 100
Profit. 25
Sale. 125
If sale 125 than cost will be 100
If sale is 1 than cost will be 100/125
If sale is 2000 than cost will be 100/125*200= 1600
answer is 1600
because 25%profit is on cost not on sales price
it means sales price = cost +25%of cost
2000=125%of cost =125/100 of cost
cost=2000×100/125
cost=1600answer
check: profit 25% of cost=400
400+1600=2000(sales price)
on the other hand according to your answer 1500×25%=375
and 375+1500=1875 wrong sales price
Answer will be A-1600. As the profit of 25% is on the cost amount and not the price. Adding 400 which is the 25% of 1600(cost) makes the final price 2000(Cost+Profit).
I think 1600 was the right answer as it was given that profit is 25% of cost not selling price. If profit is 25% of cost this makes cost as base in full 100% plus mark up of 25%.
Hence Selling price= Cost + profit
125%=100%+25%
Applying formula
(Given data/ratio of given data) *ratio of desired data
2000(sp)/125(sp percentage) *100(ratio of desired data-cost)
the right answer is 1600
( 2000 ) 100/125 = 1600
25% of 1600 is 400
1600 + 400 = 2000
your answer is not correct because profit on cost not on sale
If the profit on sale then answer is 1500 but in Question profit on cost ,so correct answer is 1600.
sale= cost+profit
2000=x+.25x
2000=1.25x
2000/1.25=x
1600=x
is it 25% on sale or cost????