Calculate ***** profit ratio from the following: revenue from operations Rs. 5,00,000; cost of revenue from operations Rs. 4,20,000; and purchases Rs. 3,60,000.
profit Ratio = ( profit)/(Revenue from operations) x 100
***** profit Revenue from operation – cost of revenue from operation
= Rs. 5,00,000 – Rs. 4,20,000
= Rs. 80,000
***** profit ratio = 80000/500000 x 100
= 16%
