Question 74 Chapter 4 of +2-B

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.

## The solution of Question 74 Chapter 4 of +2-B: –

 (a) Operating Profit Ratio = ₹ 1,75,000 X ₹ 2,00,000 ₹ 11,25,000 = 15.56% Gross Profit = 20% of Net Sales Let assume sales = 100 Gross Profit = 20 Gross Profit = 100 X ₹ 9,00,000 800 = ₹ 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

Also, Check out the solved question of previous Chapters: –

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