A company has Revenue from Operations of ₹1,00,000 and Indirect Expenses of ₹25,000. Rate of Gross Profit is 50%. Net Profit ratio will be.......

25%

The correct answer is option 1- 25%.

Gross profit Ratio = Gross profit/Revenue from operations x 100
                       50 = Gross profit/1,00,000 x 100
Gross profit = 50 x 1,00,000/100
                   = 50,000

Net profit = Gross Profit - indirect Exp
               = 50,000-25,000
               = 25,000

Net profit Ratio = Net Profit/Revenue from operations x 100
                        = 25,000/1,00,000 x 100
                        = 25%