150 :- Calculate Cost of Revenue from Operations from the following information :
Revenue from Operations Rs 12,00,000; Operating Ratio 75%; Operating Expenses Rs 1,00,000.
Solution :-
Let the Cost of Revenue from Operations be x
Operating Cost = Cost of Revenue from Operations + Operating Expenses
= x + 1,00,000
Operating Ratio = (Operating Cost/Revenue from Operations) x 100
75% = [(x + 1,00,000)/12,00,000] x 100
75 x 12,00,000/100 = x + 1,00,000
9,00,000 = x + 1,00,000
x = Rs 8,00,000
Therefore, Cost of Revenue from Operations is Rs 8,00,000.