156 :- Operating Cost Rs 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs 20,000. Calculate Operating Profit Ratio.
Solution :-
Operating Cost = Cost of Goods Sold + Operating Expenses
3,40,000 = Cost of Goods Sold + 20,000
Cost of Goods Sold = Rs 3,20,000
Gross Profit = Revenue from Operation – Cost of Goods Sold
20x/100 = x – 3,20,000
80x/100 = 3,20,000
x = 3,20,000 x 100/80
x = 4,00,000 (Revenue from Operation)
Gross Profit = 4,00,000 – 3,20,000
= Rs 80,000
Operating Profit = Gross Profit – Operating Expenses
= 80,000 – 20,000
= Rs 60,000
Operating Profit Ratio = Operating Profit/Revenue from Operation x 100
= 60,000/4,00,000 x 100
= 15%