Question

Particulars	₹
Net Revenue from Operations	20,00,000
Credit Revenue from Operations	10,00,000
Gross Profit	6,00,000
Office Expenses	2,00,000
Selling Expenses	1,00,000
Loss by Fire	2,00,000

Operating Ratio will be:

पर्याय

• 70%

• 85%

• 90%

• 95%

Answer 1

85%

Explanation:

Cost of Revenue from Operations = Net Revenue from Operations − Gross Profit

= 20,00,000 − 6,00,000

= ₹ 14,00,000 

Operating Expenses = Office Expenses + Selling Expenses

= 2,00,000 + 1,00,000

= ₹ 3,00,000

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

Operating Ratio = `(14,00,000 + 3,00,000)/(20,00,000) xx 100`

= `(17,00,000)/(20,00,000) xx 100`

= 85%