1.

From the following information calculate operating profit.Cost of goods sold – Rs. 5,00,000Administrative expenses – 25,000Selling & Distribution expenses – 35,000Net sales – 7,50,000a

Answer»
  • Operating Profit = Gross Profit – (Operating expenses + Operating income)
  • Gross Profit = Net sales – Cos of goods sold = 7,50,000-5,00,000 = 2,50,000
  • Operating Expenses = Administration expense + Selling and Distribution exp.
  • Operating Profit = 2,50,000 – (25,000+ 35,000) = Rs. 1,90,000


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