Question : Revenue from Operations Rs. 9,00,000, Gross Profit 25% on Cost, Operating Expenses Rs. 90,000. Operating Ratio are
Option 1: 25%
Option 2: 30%
Option 3: 90%
Option 4: None of the above
Answer (1)
9th Jan, 2024
Correct Answer: 90%
Solution :
Answer =
90%
Operating ratio=$\frac{\text {COGS+Op. Exp×100}}{\text {Net Sales}}$=$\frac{7,20,000+90,000}{9,00,000} \times 100$= $\frac{8,10,000}{9,00000} \times 100$= 90%.
Cost of Goods Sold + G.P= Net Sales.
⇒$x+\frac{x}{4}$= 9,00,000
⇒$\frac{5x}{4}$= 9,00,000
⇒$x$= 9,00,000×$\frac{4}{5}$
⇒$x$= 1,80,000×4=7,20,000.
Cost of goods sold= 7,20,000.
Hence, the correct option is 3.
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