Accounting · Ratio Analysis
Which of the following formulas correctly represents the Gross Profit Ratio?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(Net Profit / Cost of Revenue from Operations) × 100
- 2(Cost of Revenue from Operations / Revenue from Operations) × 100
- 3((Revenue from Operations - Cost of Revenue from Operations) / Cost of Revenue from Operations) × 100
- 4((Revenue from Operations - Cost of Revenue from Operations) / Revenue from Operations) × 100✓
Correct answer
((Revenue from Operations - Cost of Revenue from Operations) / Revenue from Operations) × 100
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