Question

revenue from operation - 680000, rate of gross profit on cost @25%, selling expense-144000, administrative expense-73000. find operating ratio​

Answer 1

Answer:

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Explanation:

gross profit =1414××cost= 15 ×15 × sales= 15×68000015×680000 =136000

let COGS be x

then, 14× x =136000x=54400014× x =136000x=544000

Operating cost = cost of goods sold+operating expenses

=544000+144000+73000

=761000

operating ratio = (operating cost ÷÷ revenue from operations) ×× 100

=(761000÷÷680000) ×× 100

=111.912%