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%
• B. 54.55%
• C. 45.45%
• D. 58.54%

Answer 1

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

= $\frac{\text{Operating Profit}}{\text{Revenue from Operations}}\times 100$

=$\frac{\text{2,10,000}}{\text{3,85,000}}\times 100$

=54.55%