Question : What will be the net profit ratio from the following data?
Net Profit Rs.60,000; Office Expenses Rs.40,000; Selling Expenses Rs.46,000; Total revenue from operations Rs.8,00,000.
Option 1: 10%
Option 2: 12.5%
Option 3: 7.5%
Option 4: None of the above
Correct Answer: 7.5%
Solution :
Net Profit ratio = Net Profit / Total revenue from operations
Net Profit ratio = ₹60,000 / ₹8,00,000 = 7.5%
Hence option 3 is the correct answer.