Calculate the operating profit ratio from the following information-
| Sales | ₹20,00,000 |
| Gross profit ratio | 30% |
| Operating ratio | 80% |
| Non-operating expenses | ₹30,000 |
| Non-operating income | ₹50,000 |
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 20%.
Operating Profit Ratio = 100 – Operating Ratio
= 100 - 80
= 20%