Question

Operating Ratio 70% , Operating expenses ₹ 22,000 , Net Sales ₹ 4,60,000 . What will be the Cost of Goods Sold ?​

Answer 1

Explanation:

Given Operating Ratio 70% , Operating expenses ₹ 22,000 , Net Sales ₹ 4,60,000 . What will be the Cost of Goods Sold ?

• Given Now Operating profit Ratio
• = Sales – Cost of goods sold – Operating Expenses / Sales x 100
•                Operating Ratio is 70%
•         Let the cost of goods sold be x
•                                   70 / 100 = 4,60,000 – x – 22,000 / 4,60,000 x 100
•                                     70 = 4,60,000 – x – 22,000 / 46
•                                  3220 = 4,38,000 – x
•                                   3220 + x = 4,38,000
•                                        Or x = 4,38,000 – 3220
•                                        Or x = 4,34,780
• Therefore cost of goods sold will be 4,34,780

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https://brainly.in/question/5415467