Q) Determine Operating ratio, if operating expenses is Rs 60,000, Sale

1.	Q) Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000.
Answer» Answer: OPERATING Ratio = 80% Explanation: Given : • Operating Expenses = Rs 60,000 • Sales = Rs 9,40,000 • Sales RETURN = Rs 40,000 • COST of net Goods SOLD = Rs 6,60,000 To find : • Operating Ratio Solution : ★ Formula : • Operating Ratio = Operating Cost/ Revenue from Operations (Net sales) x 100 • Operating Ratio = Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. Net Sales x 100 Net Sales = Sales - Sales Return $\longrightarrow 9,40,000 - 40,000$ $\longrightarrow \: 9,00,000$ Net Sales = Rs 9,00,000 Operating Ratio = $\tt{\dfrac{Cost\:of\:net\:goods\:sold \: + \: Operating \: Expenses}{Net\:Sales}\times 100}$ $\tt{\longrightarrow \: \dfrac{660000 \: + \: 60000}{900000} \times 100}$ $\tt{\longrightarrow \: \dfrac{720000}{90000} \times 100}$ $\tt{\longrightarrow \: 80\%}$ Operating Ratio = 80% ∴ Operating Ratio = 80%

Q) Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000.

Answer»

Answer:

OPERATING Ratio = 80%

Explanation:

Given :

• Operating Expenses = Rs 60,000

• Sales = Rs 9,40,000

• Sales RETURN = Rs 40,000

• COST of net Goods SOLD = Rs 6,60,000

To find :

• Operating Ratio

Solution :

★ Formula :

• Operating Ratio = Operating Cost/ Revenue from Operations (Net sales) x 100

• Operating Ratio = Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. Net Sales x 100

Net Sales = Sales - Sales Return

$\longrightarrow 9,40,000 - 40,000$

$\longrightarrow \: 9,00,000$

Net Sales = Rs 9,00,000

Operating Ratio =

$\tt{\dfrac{Cost\:of\:net\:goods\:sold \: + \: Operating \: Expenses}{Net\:Sales}\times 100}$

$\tt{\longrightarrow \: \dfrac{660000 \: + \: 60000}{900000} \times 100}$

$\tt{\longrightarrow \: \dfrac{720000}{90000} \times 100}$

$\tt{\longrightarrow \: 80\%}$

Operating Ratio = 80%

∴ Operating Ratio = 80%