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Question
Calculate Net Profit Ratio from the following
| Sales | ₹ 3,80,000 |
| Cost of good sold | ₹ 2,60,000 |
| Indirect Exp | ₹ 60,000 |
Sum
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Solution
| Sales | ₹ 3,80,000 |
| Less: Cost of goods sold | ₹ 2,60,000 |
| Gross profit | ₹ 1,20,000 |
| Less: Indirect expense | ₹ 1,60,000 |
| Net profit | ₹ 1,60,000 |
Net profit ratio = `"Net profit"/ "Sales" xx100`
=`"60,000"/ "3,80,000" xx100`
= 15.79 %
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