Revenue from Operations Rs6 00 000 Gross Profit 20 Office Expenses Rs30 000 Selling Expenses Rs48 00...........

Revenue from Operations Rs6,00,000; Gross Profit 20%; Office Expenses Rs30,000; Selling Expenses ?Rs48,000. Calculate operating ratio

80%

85%

96.33%

93%

- Revenue from Operations: Rs 6,00,000

- Gross Profit: 20% of Revenue = Rs 1,20,000

- Cost of Goods Sold (COGS): Revenue - Gross Profit = Rs 6,00,000 - Rs 1,20,000 = Rs 4,80,000

- Office Expenses: Rs 30,000

- Selling Expenses: Rs 48,000

- Operating Expenses: Office Expenses + Selling Expenses = Rs 30,000 + Rs 48,000 = Rs 78,000

- Operating Cost: COGS + Operating Expenses = Rs 4,80,000 + Rs 78,000 = Rs 5,58,000

- Operating Ratio: (Operating Cost / Revenue) × 100 = (5,58,000 / 6,00,000) × 100 = 93%

The correct answer is option:4 - 93%

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