Question

Revenue from operations is 4,50,000. Gross Profit is 25%. Operating Expenses are 22,500 and Non Operating Expenses are 10,000. Calculate Operating Profit​

Answer 1

Revenue from Operations (net sales) = 4,50,000

Gross profit = 25% on sales

Gross profit = 4,50,000×25÷100

= 112,500

Operating Expenses = 22,500

Operating profit = Revenue from operations - Gross profit - Operating expenses

= 315,000

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