Question 72 Chapter 4 of +2-B - USHA Publication 12 Class

Question 72 Chapter 4 of +2-B

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.

The solution of Question 72 Chapter 4 of +2-B: –

(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

End of Solution

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Chapter No. 8 – Company Accounts (Share Capital)

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Chapter No. 14 – Accounting Ratios

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