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
Answers
Explanation:
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}
NetRevenuefromOperation
Costofgoodssold+OperatingExpenses
×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}⟶
15,00,000
6,00,000+75,000
×100
\tt{\longrightarrow \: \dfrac{6,75,000}{15,00,000} \times 100}⟶
15,00,000
6,75,000
×100
\tt{\longrightarrow \: 45\%}⟶45%
Operating Ratio = 45%
∴ Operating Ratio = 45