Prepare a common‑size statement of profit and loss for the following data: Sales Rs. 12,00,000; Cost of Goods Sold Rs. 7,20,000; Gross Profit Rs. 4,80,000; Administrative Expenses Rs. 1,20,000; Selling Expenses Rs. 90,000; Net Profit Rs. 3,00,000. Express each item as a percentage of sales.

Step-by-step solution

1. Express each line item as a fraction of sales and then convert to percent.
2. $\text{COGS \%}=\frac{7,20,000}{12,00,000}\times 100=60\%$
3. $\text{Gross Profit \%}=\frac{4,80,000}{12,00,000}\times 100=40\%$
4. $\text{Administrative \%}=\frac{1,20,000}{12,00,000}\times 100=10\%$
5. $\text{Selling \%}=\frac{90,000}{12,00,000}\times 100=7.5\%$
6. $\text{Net Profit \%}=\frac{3,00,000}{12,00,000}\times 100=25\%$

Concept tested: Common‑Size Analysis

Published 25 September 2026 · How this solution was prepared and checked