Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Calculate operating ratio.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 75%.
Operating Ratio = (Cost of Revenue from Operations + Operating Expenses)/ Net Revenue from Operations ×100
= (9,00,000 + 2,25,000)/15,00,000*100
= 11,25,000/15,00,000 X 100
= 75%