Question

Cost of Revenue from Operations is Rs 1,50,000. Operating expenses are Rs 60,000. Revenue from Operations is Rs 2,50,000. Calculate Operating Ratio.

Answer 1

Operating Ratios =

`"( Cost of Revenue from Operations + Operating Expenses)"/"Net Revenue from operations"` x 100

= `( 150,000 + 60,000)/[250,000] xx 100`

= `[210,000]/[250,000] xx 100` = 84 %