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