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Question 74 Chapter 14 of Class 12 Part – 2 – 2024
IV. Profitability Ratios
74. (Operating Profit Ratio) Operating cost (excluding operating exp.) ₹ 9,00,000 Gross Profit Ratio 20% Operating Expenses ₹ 50,000 Calculate Operating Profit Ratio.
| (a) Operating Profit Ratio | = | ₹ 1,75,000 | X | 100 |
| ₹ 11,25,000 | ||||
| = | 15.56% | |||
| Gross Profit | = | 20% of Net Sales | ||
| Let assume sales | = | 100 | ||
| Gross Profit | = | 20 | ||
| Gross Profit | = | 100 | X | 100 |
| 800 | ||||
| = | ₹ 11,25,000 |
| Total Operating Cost | = | Operating Cost + Operating Expenses |
| = | ₹ 9,00,000 + ₹ 50,000 | |
| = | ₹ 9,50,000 | |
| Operating Profit | = | Net Sales - Operating Cost |
| = | ₹ 11,25,000 - ₹ 9,50,000 | |
| = | ₹ 1,75,000 |
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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