Use the following information to answer below GH⊄ Sales 200000 Purchase 170000 Opening stock 40000 Closing stock 50000 The gross profit percentage is

Answer Details

To calculate the gross profit percentage, we first need to calculate the gross profit, which is the difference between sales and the cost of goods sold (COGS). COGS is calculated by adding the cost of purchases to the opening stock and subtracting the closing stock from it. The formula for gross profit is: Gross Profit = Sales - COGS Using the information given in the question, we can calculate the COGS as follows: COGS = Purchase + Opening stock - Closing stock = 170000 + 40000 - 50000 = 160000 Now, we can calculate the gross profit as follows: Gross Profit = Sales - COGS = 200000 - 160000 = 40000 Finally, we can calculate the gross profit percentage as a percentage of sales using the following formula: Gross Profit Percentage = (Gross Profit / Sales) x 100% Gross Profit Percentage = (40000 / 200000) x 100% = 20% Therefore, the gross profit percentage is 20%. is the correct answer. 3, and 4 are incorrect.