Explanation

To solve this, we can follow these steps:

• Given:

  • Gross Profit = Rs. 5,000

  • Net Profit = 25% of Gross Profit

Step 1: Calculate the Net Profit.

Since the $text{Net Profit} = 25$
$text{Net Profit} = 0.25 times 5000 = Rs. 1,250$

Step 2: Calculate the Expenses.

The relationship between Gross Profit, Net Profit, and Expenses is:

$$\text{Gross Profit}=\text{Net Profit}+\text{Expenses}$$

Rearranging this formula to find the expenses:

$$\text{Expenses}=\text{Gross Profit}-\text{Net Profit}$$

Now, substitute the values:

$$\text{Expenses}=5000-1250=Rs.3,750$$