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Question
| Particulars | ₹ |
| Net Revenue from Operations | 25,00,000 |
| Credit Revenue from Operations | 15,00,000 |
| Gross Profit | 40% |
| Employee Benefit Exp. | 2,00,000 |
| Depreciation | 50,000 |
| Selling Expenses | 1,00,000 |
| Interest on Long term Debts | 3,00,000 |
Operating Profit Ratio will be:
Options
26%
28%
31.25%
14%
MCQ
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Solution
26%
Explanation:
Gross Profit = 40% of Revenue from Operations
= `40/100 xx 25,00,000`
= ₹ 10,00,000
Operating Expenses = Employee Benefit Exp. + Depreciation + Selling Expenses
= 2,00,000 + 50,000 + 1,00,000
= ₹ 3,50,000
Operating Profit = Gross Profit − Operating Expenses
= 10,00,000 − 3,50,000
= ₹ 6,50,000
Operating Profit Ratio = `"Operating Profit"/"Revenue from Operations" xx 100`
= `(6,50,000)/(25,00,000) xx 100`
= 26%
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