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Home Questions JXPEJCD92X
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Calculate the operating profit from the following information-

Sales ₹2000000
Gross profit ratio 30%
Operating ratio 80%
Non-operating expenses ₹30000
Non-operating income ₹50000
Options:

₹200000

₹300000

₹400000

₹500000

Correct Answer:

₹400000

Explanation:

Operating profit= Sales X operating profit ratio
                       = 2000000 X 20/100
                       = ₹400000

*Operating Profit Ratio = 100 – Operating Ratio
                               = 100 - 80
                                = 20%

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