The following is the summarized Profit and Loss Account of Taj Products Ltd. for the year ended 31st December. Opening Stock of Materials Purchase of Materials Direct Wages Manufacturing Expenses Selling & Distribution Expenses Administrative Expenses Finance Charges Non-operating Expenses: Loss on Sale of Assets Net Profit PROFIT AND LOSS ACCOUNT RM 99,500 3,20,000 2,25,250 14,250 30,000 1,50,000 15,000 4,000 1,50,000 10,08,000 Sales Stock of Materials (Closing) Stock of Finished Goods (Closing) Non-operating Income Interest Profit on Sale of Shares Work out the following ratios: i) Gross Profit Ratio ii) Net Profit Ratio iii) Operating Ratio iv) Cost Ratios (to cost of production) a) Material Consumed Ratio b) Production Overhead Ratio RM 8,50,000 89,000 60,000 3,000 6,000 10,08,000 Formula: Gross Profit Ratio = Gross Profit X 100 Net Sales Net Profit Ratio = Net Profit X 100 Net Sales Operating Ratio = Cost of Goods Sold + Operating Expenses X 100 Net Sales Material Consumed Ratio = Material Consumed X 100 Cost of Product Production Overhead Ratio = Production Overhead X 100 Cost of Production