Sagar Ltd. was suggested to analyze their performance to take corrective action at the right time to arrest the fall in profits and also for maintaining operational efficiency.
Following information is given-

Operating Cost = ₹8,50,000
Gross Profit Ratio = 20%
Operating Expenses = ₹50,000

What will be the cost of revenue from operations?

₹800000

Cost of Revenue from opeartions= Operating cost - Operating expenses
                                               = 850000 - 50000
                                                = ₹800000