vinayak c. chavan (CPT passed) (1011 Points)
16 October 2011how to find out profit on sales when TC is given?
Total cost is given as rs.144000 & profit is given as 20 % on sales. Now how to find out profit & sales.....UNits are 1500 per month
vinay sharma
(CA final (Article))
(327 Points)
Replied 16 October 2011
profit is 36000/-(144000*1/4 or 144000*100/80)) sales is 180000/- sale price per unit is 120/-
Ankit Gupta
(Learner)
(1557 Points)
Replied 16 October 2011
TOTAL COST Rs. 144000
+ PROFIT 20% on sales
= SALES ??
then, assuming sales to be 100.. if the sales are 100 then profit wud be 20(100*20%on sales) . .
likes wise by this method u can simply calculate profit and sales .. .
profit = 144000*20/80 . that gives Rs.36000[profit]
sales= 144000+36000[total cost+profit]= 180000 [sales] .
mridul savio Pinto
(articled trainee )
(1477 Points)
Replied 17 October 2011
agree with ankit and vinayak
Phalgun
(Audit Manager)
(327 Points)
Replied 17 October 2011
Follow three simple steps :
Step 1 - Convert percentage of profit to fraction. Here say 20% i.e 20/100(as 100 is the base for percentage)
Step 2 - Check the percentage of profit given if on sales or cost
Step 3 - To arrive at profit percentage from Cost to sales or vice versa follow the below formulae :
a) Sales to cost : above example : fraction 1/5(sales), to cost 1/5-numerator = 1/5-1=1/4
Profit = 144000*1/4=36000
b) Cost to Sales : Take above example : Sales = Cost + profit = 144000+36000=180000
Profit percentage on cost in fractions we have 1/4
on sales = 1/4+1=1/5
Profit = 180000*1/5=36000.
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 19 October 2011
| Originally posted by : ANKIT | ||
 |
TOTAL COST 144000 + PROFIT 20% on sales = SALES ?? then, assuming sales to be 100.. if the sales are 100 then profit wud be 20(100*20%on sales) . . likes wise by this method u can simply calculate profit and sales .. . profit = 144000*20/80 . that gives 36000[profit] sales= 144000+36000[total cost+profit]= 180000 [sales] . |
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