If Sales = 100, Gross Profit Ratio = 25%, What is the amount of COS?

Cost of sale will be75. i.e cos=100-25

COS75-------------------------------------------

THE COST OF GOODS SOLD IS SEVENTY FIVE

COS is then75%. Hence it is75

Sale                        =  100 (Given)

Cost of Sale           =    75

Gross Profit25%  =25  (Given)

The amount of cos will be sevety five%

sale =100 

gross profit=sale-cos

25%=100%-COS

COS=.75>>>>>COS amount= .75*100=75

Cost of Sales is equal to75.

GP=SALES - COS.Therefore25% of100 =25 which is the value of GP.By manipulating on the above formula, COS=SALES - GP,that is, COS=100 -25=75.

The answer is either75 or80. If the25% GPR is computed based on sales, gross profit will be75. However, if the25% is based on cost which is sometimes done by the businessmen, gross profit will be80.

Lets solve this equation; where cos = x

 Sales - Cos =GP 

100 - X =25

x =100-25

x=75

i hope this will clear your position. thanks and regards.