Question

Calculate Net profit ratio.Revenue from operation Rs.3,50,000 Cost of Revenue from operation Rs.1,50,000 Administration expenses Rs.50,000 Selling expenses Rs.10,000.​

Answer 1

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Cost of Goods sold = 1,50,000

Operating Expenses = Administrative Expenses = 50,000

Operating cost = Cost of goods sold + Operating Expenses

= 1,50,000 + 50,000 = 2,00,000

Net Sales = 3,50,000

Operating ratio =

Operating cost/Net sales × 100

200000/350000 × 100 = 57.14%

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