Question 72 Chapter 14 of Class 12 Part – 2 – 2024
IV. Profitability Ratios
72. (Operating Profit Ratio) Net sales (Revenue from Operation) ₹ 5,00,000 Operating Cost ₹ 50,000 Cost of goods sold (i.e. Cost of Revenue from Operation) ₹ 4,00,000. Calculate operating Profit Ratio.
| (a) Operating Profit Ratio | = | ₹ 50,000 | X | ₹ 2,00,000 |
| ₹ 5,00,000 | ||||
| = | 10% |
| Operating Profit | = | Net Sales - Cost of goods sold - Operating Cost |
| = | ₹ 5,00,000 - ₹ 4,00,000 - ₹ 50,000 | |
| = | ₹ 50,000 |
Accounting & Commerce Educator
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