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.