Practicing Success
Gross Profit Ratio of a company was 25%. If credit revenue from operation was ₹20,00,000 and cash revenue from operation is 20% of total revenue. If indirect expense of the company was ₹50,000. Calculate Net Profit Ratio? |
33.32% 25% 27.55% 23% |
23% |
The correct answer is option 4- 23%. Let total revenue from operations = a Revenue from operations = Cash revenue from operations + Credit revenue from operations Thus total revenue = 25,00,000 Gross profit ratio = 25% Net profit = Gross profit - Indirect expenses Net profit ratio = Net profit/ Revenue from operations x 100 |