Question

Calculate Net profit ratio from the following:
Sales = ₹ 6,08,000, Cost of goods sold = ₹ 4,16,000,
Indirect expenses = ₹ 96,000.

Answer 1

Sales	₹ 6,08,000
Less: Cost of Goods Sold	₹ 4,16,000
Gross profit	₹ 1,92,000
Less: Indirect expenses	₹ 96,000
Net profit	₹ 96,000

Net Profit Ratio = `"Net profit"/"Sales" xx 100`

= `(96,000)/(6,08,000) xx 100`

= 15.97%