| Cost of Revenue from Operations (Cost of Goods Sold) | 52,000 | Revenue from Operation: | |
| Operating Expenses | 18,000 | Gross Sales | 88,000 |
| Sales Return | 8,000 |
SOLUTION
Net Sales = Gross Sales – Sales Return
= 88,000 – 8,000
= Rs. 80,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 52,000 + 18,000
= Rs. 70,000
Operating Ratio = Operating Cost Net Sales × 100
= 70,000 / 80,000 × 100
= 87.5%