Gross profit may be increased by :1) Increasing selling price2) Reducing cost of sales3) Increasing sales of items with higher margin4) Increasing cost of sales1,2,3 and 41, 2 and 32, 3 and 4One only (2024)

You visited us 0 times! Enjoying our articles? Unlock Full Access!

Standard XII

Accountancy

Question

One only

2, 3 and 4

1, 2 and 3

1,2,3 and 4

Everything else remaining constant when the selling price is increased it would lead to a higher sales amount and in effect a higher gross profit.
Everything remaining constant when the cost of sale is reduced the gross profit would increase, because Sales minus Cost of Sales = Gross profit.
When sales of items with higher margin are increased it would ultimately lead to a higher sales figure and hence higher gross profit.
Everything remaining constant when the cost of sale is increased the gross profit would decrease, because Sales minus Cost of Sales = Gross profit.

Was this answer helpful?

Similar Questions

Gross profit may be increased by :
1) Increasing selling price
2) Reducing cost of sales
3) Increasing sales of items with higher margin
4) Increasing cost of sales

View Solution

An article is sold at 20% profit. If is cost price is increased by Rs. 50 and at the same time if its selling price is also increases by Rs. 30, the percentage of profit decrease by 103%. Find the cost price.

View Solution

An article is sold at 45% profit. If its cost price is increased by Rs.80 and at the same time if its selling price is also increased by Rs.70, the percentage of profit becomes 30%. Find the cost price.

View Solution

An article is sold at 20% profit. If is cost price is increased by Rs. 50 and at the same time if its selling price is also increases by Rs. 30 , the percentage of profit decrease by 103%. Find the cost price approximately.

View Solution

The marked price of an article is increased by 25% and the selling price is increased by 16.66%, then the amount of profit doubles. If the original marked price be Rs. 400 which is greater than the corresponding cost price by 33.33%, what is the increased selling price?

View Solution