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Question
| Particulars | ₹ |
| Operating Ratio | 80% |
| Office Exp. | 40,000 |
| Selling Exp. | 50,000 |
| Revenue from Operations (Sales) | 10,00,000 |
| Revenue from Operations Return (Sales Return) | 1,00,000 |
Cost of Revenue from Operations will be:
Options
₹ 8,10,000
₹ 6,30,000
₹ 7,20,000
₹ 7,10,000
MCQ
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Solution
₹ 6,30,000
Explanation:
Net Revenue from Operations = Revenue from Operations − Revenue from Operations Return
= 10,00,000 − 1,00,000
= ₹ 9,00,000
Operating Expenses = Office Exp. + Selling Exp.
= 40,000 + 50,000
= ₹ 90,000
Operating Ratio = `("Cost of Revenue from Operations + Operating Expenses")/"Net Revenue from Operations" xx 100`
`80/100` = `("Cost of Revenue from Operations" + 90,000)/(9,00,000) xx 100`
0.80 = `("Cost of Revenue from Operations" + 90,000)/(9,00,000)`
0.80 × 9,00,000 = Cost of Revenue from Operations + 90,000
7,20,000 = Cost of Revenue from Operations + 90,000
Cost of Revenue from Operations = 7,20,000 − 90,000
= ₹ 6,30,000
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