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Question

From the following, calculate operating profit ratio:

Operating cost is Rs. 1,75,000 and Revenue from Operations is Rs. 3,85,000.


A

56.81%

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B

54.55%

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C

45.45%

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D

58.54%

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Solution

The correct option is B

54.55%


Operating profit = Revenue from Operations - Operating Cost
= Rs. 3,85,000 - Rs. 1,75,000
= Rs. 2,10,000

Operating Profit ratio

= Operating ProfitRevenue from Operations×100

=2,10,0003,85,000×100

=54.55%


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