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Cost of sale will be75. i.e cos=100-25
COS75-------------------------------------------
THE COST OF GOODS SOLD IS SEVENTY FIVE
COS is then75%. Hence it is75
Sale = 100 (Given)
Cost of Sale = 75
Gross Profit25% =25 (Given)
The amount of cos will be sevety five%
sale =100
gross profit=sale-cos
25%=100%-COS
COS=.75>>>>>COS amount= .75*100=75
Cost of Sales is equal to75.
GP=SALES - COS.Therefore25% of100 =25 which is the value of GP.By manipulating on the above formula, COS=SALES - GP,that is, COS=100 -25=75.
The answer is either75 or80. If the25% GPR is computed based on sales, gross profit will be75. However, if the25% is based on cost which is sometimes done by the businessmen, gross profit will be80.
Lets solve this equation; where cos = x
Sales - Cos =GP
100 - X =25
x =100-25
x=75
i hope this will clear your position. thanks and regards.
