Question

If net revenue from operation of a firm are15,00,000.GP is 9,00,000 and operating expenses are 75,000. The operating profit ratio will be​

Answer 1

The Operating Profit Ratio will be 45%

Explanation:

Given :

• Operating Expenses = 75,000

• Net Revenue from Operation = 15,00,000

• Gross Profit = 9,00,000

To find :

• The Operating Profit Ratio

Solution :

★ Formula :

• Operating Ratio = Operating Cost/ Revenue from Operations (Net sales) x 100

• Operating Ratio = Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. Net Sales x 100

Net Revenue from Operation = 15,00,000

Operating Ratio =

$\tt{\dfrac{Cost\:of\:goods\:sold \: + \: Operating \: Expenses}{Net \: Revenue \: from \: Operation}\times 100}$

Cost of Goods Sold = Net Revenue from Operation - Gross Profit

Cost of Goods Sold = 15,00,000 - 9,00,000

Cost of Goods Sold = 6,00,000

$\tt{\longrightarrow \: \dfrac{6,00,000 \: + \: 75,000}{15,00,000} \times 100}$

$\tt{\longrightarrow \: \dfrac{6,75,000}{15,00,000} \times 100}$

$\tt{\longrightarrow \: 45\%}$

Operating Ratio = 45%

∴ Operating Ratio = 45%