Revenue from operations ₹ 4,00,000; Cost of revenue from operations 60% of revenue from operations, Indirect expenses 15% of gross profit; Income tax 40%. Calculate net profit after tax.

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₹ 81,600 Explanation: Revenue from operations = ₹ 4,00,000 1. Cost of revenue from operations = 60% of ₹ 4,00,000 = ₹ 2,40,000 2. Gross profit = Revenue − Cost of revenue = ₹ 4,00,000 − ₹ 2,40,000 = ₹ 1,60,000 3. Indirect expenses = 15% of Gross profit = 15% of ₹ 1,60,000 = ₹ 24,000 4. Profit before tax = Gross profit - Indirect expenses = ₹ 1,60,000 − ₹ 24,000 = ₹ 1,36,000 5. Income tax = 40% of Profit before tax = 40% of ₹ 1,36,000 = ₹ 54,400 6. Net profit after tax = Profit before tax − Income tax = ₹ 1,36,000 − ₹ 54,400 = ₹ 81,600

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