Revenue form operation Rs 900000 gross profit 25% on cost, operating Expenses Rs 90000 . Calculate operating Ratio.

Explanation

operating ratio =`("cost of revenue form opeations+opeating Expenses")/("Revenue from operations")xx100`
`=(Rs 720000+Rs 90000)/(Rs 900000)xx100=90%`
calculation of cost of revenue form operations:
Let cost of revenue form opetion s=Rs 100
Let cost of revenue form operations =Rs 100
Gross profit =Rs 25 revenue from opeartions=Rs 125
If revenue form operation are Rs 900000
Then cos to of revenue form operation `=Rs 900000xx(Rs 100)/(Rs 125)=Rs 720000`