Question
Given the following information:
✓
Answer
Gross Profit = Revenue from Operations - Cost of revenue from operations
= ₹ 3,40,000 - ₹ 1,20,000 = ₹ 2,20,000
Gross Profit Ratio $=\frac{\text{Gross Profit}}{\text{Net Revenue from Operations}}\times100$
$=\frac{₹\ 2,20,000}{₹\ 3,40,000}\times100=64.71\%$
Operating Expenses = Selling Expenses + Administrative Expenses
= 80,000 + 40,000 = 1,20,000
Operating Ratio $=\frac{\text{Cost of Revenue from Operations + Operating Expenses}}{\text{Net Revenue from Operations}}\times100$
$=\frac{₹\ 1,20,000+₹\ 1,20,000}{₹\ 3,40,000}\times100=70.59\%$
= ₹ 3,40,000 - ₹ 1,20,000 = ₹ 2,20,000
Gross Profit Ratio $=\frac{\text{Gross Profit}}{\text{Net Revenue from Operations}}\times100$
$=\frac{₹\ 2,20,000}{₹\ 3,40,000}\times100=64.71\%$
Operating Expenses = Selling Expenses + Administrative Expenses
= 80,000 + 40,000 = 1,20,000
Operating Ratio $=\frac{\text{Cost of Revenue from Operations + Operating Expenses}}{\text{Net Revenue from Operations}}\times100$
$=\frac{₹\ 1,20,000+₹\ 1,20,000}{₹\ 3,40,000}\times100=70.59\%$
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