Question

Revenue from Operations (Sales) ₹ 8,00,000; G.P. 25% on Cost; Office Exp. ₹ 25,000; Selling Exp. ₹ 15,000; Loss on Sale of Plant ₹ 10,000. Operating Ratio will be ______.

पर्याय

• 85%

• 86.25%

• 80%

• 81.25%

Answer 1

Revenue from Operations (Sales) ₹ 8,00,000; G.P. 25% on Cost; Office Exp. ₹ 25,000; Selling Exp. ₹ 15,000; Loss on Sale of Plant ₹ 10,000. Operating Ratio will be 85%.

Explanation:

Operating Ratio = `"Cost of Revenue from Operations + Operating Expenses"/"Revenue from Operation" xx 100`

If Cost is 100, G.P. will be ₹ 25 and Revenue from Operations will be ₹ 125

Hence, Cost of Revenue from Operations = `8,00,000 xx 100/125`

= ₹ 6,40,000

Operating Expenses = Office Exp. + Selling Exp.

= 25,000 + 15,000

= ₹ 40,000

Operating Ratio = `(6,40,000 + 40,000)/(8,00,000) xx 100`

= `(6,80,000)/(8,00,000) xx 100`

= 85%