Multiple Choice Questions on If net revenue from operations of a firm are Rs 15 00 000 Gross Profit is Rs 9 00 000 and operating ........... for UPSC EPFO Exam Preparation

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Multiple Choice Questions

If net revenue from operations of a firm are Rs 15 00 000 Gross Profit is Rs 9 00 000 and operating ...........

General Accounting Principles Financial statement analysis 
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    If net revenue from operations of a firm are Rs 15,00,000; Gross Profit is Rs 9,00,000 and operating expenses are Rs 75,000, what will be percentage of operating income on net revenue from operations?

    45%

    Incorrect Answer

    55%

    Correct Answer

    35%

    Incorrect Answer

    65%

    Incorrect Answer
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    Explanation:

    operating income= gross profit−operating expenses= Rs (−9,00,000-75,000)= Rs 8.25,000

    operating income ratio= operating profit / revenue from operation×100

    =8,25,000/15,00,000×100

    operating income ratio=55%

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