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Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.?
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Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this...
Introduction
Young India Ltd. has an Operating Profit Ratio of 20%. To maintain this ratio at 25%, management has to take some steps. In this response, we will discuss the options available to the management.
Option 1: Increase selling price of Stock-in-trade
One way to maintain the Operating Profit Ratio at 25% is to increase the selling price of Stock-in-trade. This will directly increase the revenue of the company, and if the cost of goods sold remains the same, the profit margin will increase, leading to an increase in the Operating Profit Ratio.
Option 2: Reduce Cost of Revenue from Operations
Another way to maintain the Operating Profit Ratio at 25% is to reduce the Cost of Revenue from Operations. This can be achieved by reducing the cost of goods sold, reducing the operating expenses, or increasing the efficiency of the operations. By reducing the cost of revenue, the profit margin will increase, leading to an increase in the Operating Profit Ratio.
Option 3: Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations
The third option available to the management is to combine the first two options. By increasing the selling price of Stock-in-trade and reducing the cost of revenue from operations, the company can achieve a higher profit margin, leading to an increase in the Operating Profit Ratio.
Conclusion
In conclusion, Young India Ltd. has three options available to maintain the Operating Profit Ratio at 25%. The management can increase the selling price of Stock-in-trade, reduce the cost of revenue from operations, or combine both options. The decision will depend on various factors such as market conditions, competition, and production costs.
Young India Ltd. has an Operating Profit Ratio of 20%. To maintain this ratio at 25%, management has to take some steps. In this response, we will discuss the options available to the management.
Option 1: Increase selling price of Stock-in-trade
One way to maintain the Operating Profit Ratio at 25% is to increase the selling price of Stock-in-trade. This will directly increase the revenue of the company, and if the cost of goods sold remains the same, the profit margin will increase, leading to an increase in the Operating Profit Ratio.
Option 2: Reduce Cost of Revenue from Operations
Another way to maintain the Operating Profit Ratio at 25% is to reduce the Cost of Revenue from Operations. This can be achieved by reducing the cost of goods sold, reducing the operating expenses, or increasing the efficiency of the operations. By reducing the cost of revenue, the profit margin will increase, leading to an increase in the Operating Profit Ratio.
Option 3: Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations
The third option available to the management is to combine the first two options. By increasing the selling price of Stock-in-trade and reducing the cost of revenue from operations, the company can achieve a higher profit margin, leading to an increase in the Operating Profit Ratio.
Conclusion
In conclusion, Young India Ltd. has three options available to maintain the Operating Profit Ratio at 25%. The management can increase the selling price of Stock-in-trade, reduce the cost of revenue from operations, or combine both options. The decision will depend on various factors such as market conditions, competition, and production costs.
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Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.?
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Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.?.
Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.?.
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Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.?, a detailed solution for Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? has been provided alongside types of Young India Ltd. has a Operating Profit Ratio of 20%. To maintain this ratio at 25%, management may la Increase selling price of Stock-in-trade. bi Reduce Cost of Revenue from Operations. (c) Increase selling price of Stock-in Trade and to reduce Cost of Revenue from Operations. All of the above.? theory, EduRev gives you an
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