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    Question

    If revenue from operations is Rs.60,00,000 Gross Profit

    ratio is 60%, Operating expenses are Rs.4,00,000 and Income tax rate is 30%, what will be the operating Profit?
    A 24,00,000 Correct Answer Incorrect Answer
    B 32,00,000 Correct Answer Incorrect Answer
    C 22,40,000 Correct Answer Incorrect Answer
    D 36,00,000 Correct Answer Incorrect Answer

    Solution

    Operating profit = Gross Profit – Operating expenses  Gross Profit = Sales *Gross Profit ratio  60,00,000 *60% = 36,00,000 So, operating profit = 36,00,000 – 4,00,000 = 32,00,000

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