| 1. |
calculating operating ratio :cost of revenue from operation-52, 000operating expenses 18, 000gross sales-88, 000sales return-8000 |
|
Answer» net sales = gross sales - sales return = 88000 - 8000 = 80000 gross profit = net sales - cost of revenue from operations = 80000 - 52000 = 28000 operating profit =gross profit - operating expenses = 28000 - 18000 = 10000 operating profit ratio = operatinprofit /net sales × 100 =10000/80000 × 100 = 12.5% operating ratio = 100 - operating profit ratio = 100 - 12.5 = 87.5 |
|