Question

From the following , calculate Net profit ratio:-
Revenue from operation Rs.5,00,000
Gross Profit Rs. 2,00,000
Salaries and Wages Rs.45,000
Advertisement Expenses Rs.10,000
Interest Rs.5,000
Rent( income) Rs.60,000​

Answer 1

Answer:

40%

Explanation:

Calculation of Net Profit

Gross profit - 2,00,000

- salaries (45,000)

- Advertisement expense (10,000)

- Interest (5,000)

+ Rent 60,000

= 2,00,000

NP ratio = NP/ Sales

2,00,000/5,00,000

40%

Note:

Assumed Interest is an expense as there is no proper information