Question

Particulars	₹
Revenue from Operations	5,00,000
Cost of Revenue from Operations	3,10,000
Office Expenses	40,000
Selling Expenses	30,000
Loss by Fire	20,000

Operating Profit Ratio will be:

विकल्प

• 20%

• 30%

• 24%

• 38%

Answer 1

24%

Explanation:

Operating Profit Ratio = `"Operating Profit"/"Revenue from Operation" xx 100`

Gross Profit = Revenue from Operations − Cost of Revenue from Operations

= 5,00,000 − 3,10,000

= ₹ 1,90,000

Operating Profit = Gross Profit − Operating Exp.

= 1,90,000 − 40,000 − 30,000

= ₹ 1,20,000

Operating Profit Ratio = `(1,20,000)/(5,00,000) xx 100`

= 24%