1. #1
    Unregistered

    How to calculate Operating profit and Operating profit ratio?

    operating profit = 40%

    Net sales = Rs.500000

    operating expense = rs 40000

    calculate oprating profit & oprating profit ratio

  2. #2
    Lks Rcs Array
    Join Date
    Dec 2011
    Posts
    299

    Re: How to calculate Operating profit and Operating profit ratio?

    hi,



    its simple to solve the problem :


    FORMULAS ARE :

    --> operating ratio = cost of goods sold + operating expenses * 100
    sales


    --> operating profit ratio = operating profit * 100
    sales


    operating profit = net profit + non-operating expenses - non-operating income
    or
    gross profit - operating expenses

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