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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:
Options
20%
30%
24%
38%
MCQ
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Solution
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%
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