SOLUTION
Given: Revenue from Operations (Net Sales) = Rs. 12,00,000
Operating Ratio = 75%
Operating Expenses = Rs. 1,00,000
Find out:
Cost of Revenue from Operations Operating Ratio = Operating Cost Net Sales × 1000 / 75
= Operating Cost / 12,00,000
Operating Cost = 9,00,000
Operating Cost = Cost of Revenue from Operations + Operating Expenses
9,00,000 = Cost of Revenue from Operations + 1,00,000
Cost of Revenue from Operations = Rs. 8,00,000