155 :- Revenue from Operations Rs 9,00,000; Gross Profit 25% on Cost; Operating Expenses Rs 45,000. Calculate Operating Profit Ratio.
Solution :-
Let Cost of Goods Sold be x
Gross Profit = Revenue from Operations – Cost of Goods Sold
25x/100 = 9,00,000 – x
125x/100 = 9,00,000
x = 9,00,000/125 x 100
x = Rs 7,20,000 (Cost of Goods Sold)
Gross Profit = 9,00,000 – 7,20,000
= Rs 1,80,000
Operating Profit = Gross Profit – Operating Expenses
= 1,80,000 – 45,000
= Rs 1,35,000
Operating Profit Ratio = Operating Profit/Revenue from Operation x 100
= 1,35,000/9,00,000 x 100
= 15%