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

SOLUTION

Gross Profit = 9,00,000 × 25125
= 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 Operations × 100
= 1,35,000 / 9,00,000 × 100
= 15%