Question

Particulars	₹
Operating Ratio	80%
Office Exp.	40,000
Selling Exp.	50,000
Revenue from Operations (Sales)	10,00,000
Revenue from Operations Return (Sales Return)	1,00,000

Cost of Revenue from Operations will be:

विकल्प

• ₹ 8,10,000

• ₹ 6,30,000

• ₹ 7,20,000

• ₹ 7,10,000

Answer 1

₹ 6,30,000

Explanation:

Net Revenue from Operations = Revenue from Operations − Revenue from Operations Return 

= 10,00,000 − 1,00,000

= ₹ 9,00,000

Operating Expenses = Office Exp. + Selling Exp.

= 40,000 + 50,000

= ₹ 90,000

Operating Ratio = `("Cost of Revenue from Operations + Operating Expenses")/"Net Revenue from Operations" xx 100`

`80/100` = `("Cost of Revenue from Operations" + 90,000)/(9,00,000) xx 100`

0.80 = `("Cost of Revenue from Operations" + 90,000)/(9,00,000)`

0.80 × 9,00,000 = Cost of Revenue from Operations + 90,000

7,20,000 = Cost of Revenue from Operations + 90,000

Cost of Revenue from Operations = 7,20,000 − 90,000

= ₹ 6,30,000