How to find out profit on sales when tc is given?

vinayak c. chavan (CPT passed) (1011 Points)

16 October 2011

how 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

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5 Replies

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(10020%on sales) . . likes wise by this method u can simply calculate profit and sales .. . profit = 14400020/80 . that gives 36000[profit] sales= 144000+36000[total cost+profit]= 180000 [sales] .