Operating Profit Ratio of XYZ Ltd. is 60%. The operating ratio of XYZ Ltd. is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 40%
The operating ratio (operating cost to revenue from operations) and the operating profit ratio (operating profit to revenue from operations) together make up the whole revenue from operations, so they always add up to 100%.
Operating ratio = 100% − Operating profit ratio
= 100% − 60% = 40%
NCERT (2026-27 edition):
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