Calculate operating profit ratio:
Opening stock = 500000
Purchase = 50000
Sales = 75000
Closing stock = 7500
Administrative expense = 2500
Selling expenses = 6000
Divident on shares = 1500
Loss by thieft = 100000
Sales return = 1500

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Solution

Dear Student,

Cost of revenue from operations= opening stock+ net purchases+- closing stock
= 500000+50000-7500
=542500
Operating Expenses= Selling Expenses+ Administrative Expenses
= 6000+2500
=8500
Operating Cost=Cost of revenue from operations+Operating expenses
=542500+8500
=551000
Net sales=Sales- Sales Return
=75000-1500= 73500
Operating Ratio= $\frac{o p e r a t i n g \cos t}{n e t s a l e s} \times 100$ = $\frac{551000}{73500} \times 100$ = 749.66%
Operating Profit Ratio=100-749.66%= -649.66%

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Calculate operating profit ratio: Opening stock = 500000 Purchase = 50000 Sales = 75000 Closing stock = 7500 Administrative expense = 2500 Selling expenses = 6000 Divident on shares = 1500 Loss by thieft = 100000 Sales return = 1500

Calculate operating profit ratio:
Opening stock = 500000
Purchase = 50000
Sales = 75000
Closing stock = 7500
Administrative expense = 2500
Selling expenses = 6000
Divident on shares = 1500
Loss by thieft = 100000
Sales return = 1500