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Question

Revenue from Operations ₹ 9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹ 45,000. Calculate Operating Profit Ratio.

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Solution

Gross Profit = 9,00,000×25125= Rs 1,80,000Operating Profit=Gross Profit-Operating Expenses =1,80,000-45,000=Rs 1,35,000 Operating Profit Ratio=Operating ProfitRevenue from Operations×100 =1,35,0009,00,000×100=15%

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