Advertisements
Advertisements
Question
| Particulars | ₹ |
| Credit Revenue from Operations | 15,00,000 |
| Cash Revenue from Operations | 10,00,000 |
| Employee Benefit Expenses | 3,00,000 |
| Selling and Distribution Expenses | 2,00,000 |
| Loss on Sale of Machinery | 1,00,000 |
| Gross Profit Ratio | 40% |
Operating Ratio will be:
Options
80%
84%
60%
64%
MCQ
Advertisements
Solution
80%
Explanation:
Total Revenue from Operations = Credit Revenue from Operations + Cash Revenue from Operations
= 10,00,000 + 15,00,000
= ₹ 25,00,000
Gross Profit = 40/% of 25,00,000
= ₹ 10,00,000
Gross Profit = Total Revenue − Cost of Revenue from Operations
10,00,000 = 25,00,000 − Cost of Revenue from Operations
Cost of Revenue from Operations = 25,00,000 − 10,00,000
= ₹ 15,00,000
Operating Expenses = Employee Benefit Expenses + Selling and Distribution Expenses
= 3,00,000 + 2,00,000
= ₹ 5,00,000
Operating Ratio = `("Cost of Revenue from Operations" + "Operating Expenses")/"Total Revenue from Operations" xx 100`
= `(15,00,000 + 5,00,000)/(25,00,000) xx 100`
= `(20,00,000)/(25,00,000) xx 100`
= 80%
shaalaa.com
Is there an error in this question or solution?
