SOLUTION
Given: Operating Cost = 6,80,000
Operating Expenses = 80,000
Gross Profit Ratio = 25%
Find out: Operating Ratio Operating Cost = Cost of Revenue from Operations + Operating Expenses
6,80,000 = Cost of Revenue from Operations + 80,000
Cost of Revenue from Operations = Rs. 6,00,000
Gross Profit = 14th of sales = 13rd of cost
Gross Profit = 13 × 6,00,000
= Rs. 2,00,000
Gross Profit Ratio = Gross Profit Net Sales × 100 / 25
2,00,000 / 25 = Net Sales × 100
8,000 = Net Sales × 100
Net Sales = Rs. 8,00,000
Operating Ratio = Operating Cost / Net Sales × 100
= 6,80,000 / 8,00,000 × 100
= 85%