Gross profit
Gross profit= Mark-up/Cost of salesx100
Margin=1/4+1=1/5
1/5=x/200,000
Gross profit=40,000
Net profit
Net profit=Gross profit-expenses
=40,000-15,250
=24,750
Rate of stock turnover
Rate of stock turnover=Cost of sales/Average stock
Cost of sale= Sales-gross profit
=200,000-40,000
=160,000
ROSTO=160,000/average stock
=160,000/27,500
=5.8 times