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Question 73 Chapter 14 of Class 12 Part – 2 – 2024
IV. Profitability Ratios
73. (Operating Profit Ratio) Net Sales (Revenue from Operation) ₹ 10,00,000 Gross Profit 25% on Sales (Revenue from operation) Operating Expenses ₹ 50,000 Calculate operating Profit Ratio.
| (a) Operating Profit Ratio | = | ₹ 2,00,000 | X | 100 |
| ₹ 10,00,000 | ||||
| = | 20% | |||
| Gross Profit | = | Gross25% of Net Sales | ||
| = | 25 | X | ₹ 10,00,000 | |
| 100 | ||||
| = | ₹ 2,50,000 |
| Operating Profit | = | Gross Profit - Operating Cost |
| = | ₹ 2,50,000 - ₹ 50,000 | |
| = | ₹ 2,00,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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