| Particulars | Amount (Rs.) |
| Revenue from Operations (Net Sales) | 5,00,000 |
| Cost of Revenue from Operations (Cost of Goods Sold) | 2,00,000 |
| Wages | 1,00,000 |
| Office and Administrative Expenses | 50,000 |
| Interest on Borrowings | 5,000 |
SOLUTION
Cost of Goods Sold = 2,00,000
Operating Expenses = Office and Administrative Expenses = 50,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 2,00,000 + 50,000
= 2,50,000
Net Sales = 5,00,000
Operating Ratio = Operating Cost / Net Sales ×100
= 2,50,000 / 5,00,000 × 100
= 50%
Operating Profit Ratio = 100 – Operating Ratio
= 100 – 50
= 50%