Question

If net revenue from operations of a firm are ₹ 1,20,000, cost of revenue from operations is ₹ 66,000 and operating expenses are ₹ 21,600, what will be the percentage of operating income on net revenue from operations?

Options

• 55%

• 45%

• 73%

• 27%

Answer 1

27%

Explanation:

Net revenue from operations = ₹ 1,20,000

Cost of revenue from operations = ₹ 66,000

Operating expenses = ₹ 21,600

Calculate Operating Income:

Operating Income = Net Revenue from Operations − Cost of Revenue from Operations − Operating Expenses

= ₹ 1,20,000 − ₹ 66,000 − ₹ 21,600

Operating Income = ₹ 32,400

Percentage of operating income on net revenue from operations = `"Operating Income"/"Net revenue from operations" xx 100`

= `(32,400)/(1,20,000) xx 100`

= 27%