Question

1. The Net Revenue from Operations of Gama Ltd. is ₹ 14,00,000
2. Its Gross Profit is ₹ 9,00,000
3. Operating Expenses are ₹ 75,000
4. Commission Received is ₹ 5,000
5. Profit from Sale of Fixed Asset is ₹ 10,000

The Operating Profit Ratio of Gama Ltd. will be ______.

Options

• 59.29%

• 58.92%

• 60%

• 58.93%

Answer 1

The Operating Profit Ratio of Gama Ltd. will be 58.93%.

Explanation:

Operating Profit = Gross Profit − Operating Expenses

= 9,00,000 − 75,000

= ₹ 8,25,000

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

Operating Profit Ratio = `(8,25,000)/(14,00,000) xx 100`

= 58.93%