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Question
Calculate Operating Ratio
| Cost of good sold | ₹ 3,50,000 |
| Operating Exp. | ₹ 30,000 |
| Sales | ₹ 5,00,000 |
| Sales Return | ₹ 30,000 |
Sum
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Solution
Net sales = Sales – Sales return
= 5,00,000 – 30,000
= ₹ 4,70,000
Operating ratio = `("Cost of goods sold" + "operating expense")/"Net sales"xx100`
= `("3,50,000" +" 30,000")/ (4,70,000)xx100`
= `(3,80,000)/(4,70,000) xx100`
= 80.85 %
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