# profit and Loss problem Help me pleasee

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Incognito

hi all

The profit and loss statement for the financial year of a company shows a sale of Rs 15200. The primary cost is 25% of sales and leading costs account for 20% of the gross profit. The gross profit is determined by deducting the primary cost plus the cost of miscellaneous expenses of Rs 1200. The managing director's salary of Rs 500 per annum plus 2% of annual sales is a minimum cost. What is the per cent profit on a capital investment of Rs 20000?

Thank you.

Incognito
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20000*25/100=5000 5000*20/100

20000*25/100=5000
5000*20/100= 1000
1000-1200= -1200
-1200-500= 1700
20000*2/100=400
1700+400=2100
20000*20/100=4000-2100=1900Rs. profit

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Incognito
Solution

capital investment = Rs 20000
Sale = Rs 15200
Primary cost = .25*15200
= 3800
cost of miscellaneous expenses = Rs 1200
gross profit = 20000-(3800+1200)
= 15000
minimum cost = 804