Question

calculate operating profit ratio if operating ratio is 78%

Answer 1

Sales=Operating cost +operating profit.

suppose salez=100%

Then put values..

100%=78%+O.P

100%-78%=O.P

O.P=)22%

Hence operating profit ratio =22%


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Answer 2

The answer for the following question is given below.  

Explanation:

Given:

Operating Ratio = 78%

The operating profit ratio is a revenue ratio indicator that informs shareholders that how much of the income turns into net profit during a particular period in the business.

Operating Profit ratio = 100% - Operating ratio  

Operating Profit ratio = 100% - 78%

Operating Profit ratio = 22%

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