Question

Calculate operating ratio from the Net Revenue from Operations 1200000
Credit Revenue from Operations 800000
Gross Profit 300000
Office Expenses 80,000
Selling Expenses 40000
Loss by Fire 20,000​

Answer 1

Answer:

70.58%

Explanation:

The operating ratio of a company can be determined by comparing the operating expenses with the net sales. Smaller the ratio, higher is the efficiency of the business.

It is calculated as:

Operating Ratio = (Operating expenses/ Net Sales) x 100

                           = (Cost of Goods sold + Selling expenses + Administration

                               expenses/ Net Sales) x 100

                            (1,20,000+80,000+40,000/3,40,000)x100

                           = (2,40,000/3,40,000)x100 =  70.58%

please mark me as brainliest....

Answer 2

Answer:

20002hehz zsnskajssas