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Sticky Note
If the Gross profit is Rs. 5,000 and the net profit is 25% of the Gross profit. The expenses?
  1. Rs. 3,750
  2. Rs. 1,250
  3. Rs. 4,150
  4. Rs. 6,250
Explanation

To solve this, we can follow these steps:

  • Given:

    • Gross Profit = Rs. 5,000

    • Net Profit = 25% of Gross Profit

Step 1: Calculate the Net Profit.

Since the Net Profit=25%×5000text{Net Profit} = 25% times 5000
Net Profit=0.25×5000=Rs.1,250text{Net Profit} = 0.25 times 5000 = Rs. 1,250

Step 2: Calculate the Expenses.

The relationship between Gross Profit, Net Profit, and Expenses is:

Rearranging this formula to find the expenses:

Now, substitute the values:

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