Calculate Operating Profit from the following information.

Gross Profit Ratio is 65%. Revenue from operations is of ₹10,00,000 and Operating Expenses are of ₹3,00,000.

₹3,50,000

The correct answer is option 3- ₹3,50,000.

Gross Profit Ratio = Gross Profit/Net Revenue of Operations × 100
                       65 = Gross profit/10,00,000 x 100
Gross Profit  = 65 x 10,00,000/100
                    = ₹6,50,000

Operating profit = Gross Profit - Operating Expenses + Operating income
                          = 6,50,000-3,00,000
                          = 3,50,000

So, operating profit is ₹3,50,000.

* There is no information regarding operating income so it is considered nil.