Question : What will be the Operating Ratio, if the Operating profit Ratio is 11.06%.
Option 1: 11.06%
Option 2: 84.53%
Option 3: 88.94%
Option 4: None of the above
Correct Answer: 88.94%
Solution : Answer = 88.94% Operating ratio= 100 - operating profit= 100 - 11.06% = 88.94%. Hence, the correct option is 3.
Question : _____________ratio establishes a relationship between gross profit and Revenue from Operations, i.e. Net Sales.
Option 1: Net profit ratio
Option 2: Operating profit ratio
Option 3: Gross profit ratio
Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.
Option 1: Operating profit ratio
Option 2: Operating ratio
Option 3: Net profit ratio
Option 4: Gross profit ratio
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