Question

    Given the following information: Revenue from

    Operations 3,40,000 Cost of Revenue from Operations 1,20,000 Selling expenses 80,000 Administrative Expenses 40,000 Calculate Operating ratio.
    A 70.5% Correct Answer Incorrect Answer
    B 71% Correct Answer Incorrect Answer
    C 71.5% Correct Answer Incorrect Answer
    D 72.5% Correct Answer Incorrect Answer
    E 72.6% Correct Answer Incorrect Answer

    Solution

    Operating Cost = Cost of Revenue from Operations + Selling Expenses + Administrative Expenses = Rs. 1,20,000 + 80,000 + 40,000 = Rs. 2,40,000 Operating Ratio =Operating Cost/Net Revenue from Operations × 100 =Rs. 2,40,000/ 3,40,000 * 100 = 70.59%  

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