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