Advertisement Remove all ads

Revenue from Operations ₹ 9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹ 45,000. Calculate Operating Profit Ratio - Accountancy

Sum

Revenue from Operations ₹ 9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹ 45,000. Calculate Operating Profit Ratio.

Advertisement Remove all ads

Solution

Gross Profit = `900000 xx 25/125` = Rs 180000

Operaing Profit = Gross Profit - Operating Expenses

= 180000 - 45000 = Rs 135000

Operaing Profit Ratio =` "Operaing Profit"/"Revenue from Operations" xx 100`

`= 135000/900000 xx 100 = 15 %`

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 121 | Page 106
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×