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Question
Revenue from operations (Net Sales) Rs 4,50,000; Cost of good sold Rs 3,60,000: Operating expenses Rs 22,500. What will be Operating Profit Ratio?
Revenue from operations (Net Sales) Rs 4,50,000; Cost of good sold Rs 3,60,000: Operating expenses Rs 22,500. What will be Operating Profit Ratio?
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Solution
The correct option is B 15%
Operating profit Ratio = Sales - Cost of goods sold - Operating Expenses ---------------------------------------- x 100 Sales = 4,50,000 - 3,60,000 - 22500 ---------------------------------------------- x 100 4,50,000 = 67,500 --------------- x 100 4,50,000 = 15%.
Operating profit Ratio = Sales - Cost of goods sold
- Operating Expenses
---------------------------------------- x 100
Sales
= 4,50,000 - 3,60,000 - 22500
---------------------------------------------- x 100
4,50,000
= 67,500
--------------- x 100
4,50,000
= 15%.
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