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