A company reports sales of Rs. 2,000,000 and cost of goods sold of Rs. 1,200,000. What is its gross profit margin?
Correct answer: B. 40%
- A. 30%
- B. 40%
- C. 50%
- D. 60%
Explanation
Gross profit is Rs. 800,000, calculated as sales minus cost of goods sold. Dividing Rs. 800,000 by Rs. 2,000,000 gives a gross profit margin of 40%.
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