Question

If the operating ratio is 70% the net profit ration will be ?​

Answer 1

Answer:

0%

Explanation:

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Answer 2

The Operating profit ratio will be 30%.

Explanation:

• The Operating ratio is used by a company to measure the efficiency of a company's management.
• It is a comparison between the total operating expenses of the company and the total net sales of the company.
• The Operating profit ratio is calculated to find out the margin of profit a company makes after paying for its operations.
• It shows the efficiency of the company's management in controlling business operating expenses.
• Operating ratio + Operating profit ratio = 100%.
• Given, Operating ratio is 70%, the operating profit ratio will be = 70% + Operating profit ratio = 100%
• Operating profit ratio = 30%.

Here the above question is incomplete or incorrect because of that question is done according to the best assumption.