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.
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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