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    • Question

      A company has the following details: • Sales:

      ₹100 lakh • Cost of Goods Sold: ₹70 lakh • Operating Expenses: ₹10 lakh • Interest: ₹5 lakh • Taxes: ₹5 lakh What is the Operating Profit Margin (%)?
      A 10% Correct Answer Incorrect Answer
      B 20% Correct Answer Incorrect Answer
      C 5% Correct Answer Incorrect Answer
      D 12% Correct Answer Incorrect Answer
      E 6% Correct Answer Incorrect Answer

      Solution

      Operating Profit = ₹100 – ₹70 – ₹10 = ₹20 lakh operating Profit Margin = (₹20 lakh / ₹100 lakh) × 100 = 20%

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