PRC-1 · Chapter 10 · Question 68 of 100
An entity has Gross Profit of Rs. 1,534,000, Administrative Expenses of Rs. 814,000, and Selling Expenses of Rs. 550,000. What is the Operating Profit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 170,000
Explanation
Operating Profit = Gross Profit - Operating Expenses (Admin + Selling). 1,534,000 - (814,000 + 550,000) = Rs. 170,000.
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