The operating ratio of a firm is 45% and

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

The operating ratio of a firm is 45% and Revenue from Operation is 12,00,000. Calculate the firm's Operating Profit.

Options:

₹6,60,000

₹5,40,000

₹12,00,000

None of these

Correct Answer:

₹6,60,000

Explanation:

O.R + O.P.R = 100%
O.P.R = 100 - 45 = 55%
Operating Profit Ratio = Operating Profit / Sales
55/100 = O.P / 12,00,000
Operating profit = 6,60,000