If Revenue from Operations is Rs. 6,00,000, Gross Profit is 25% on Cost, and Operating Expenses are Rs. 60,000, what will be the Operating Ratio?

Let Cost of Revenue from Operations be $x$. Gross Profit is $25\%$ on Cost ($0.25x$). Revenue from Operations = Cost + Gross Profit $\implies 6,00,000 = x + 0.25x = 1.25x$. Therefore, $x = 6,00,000 / 1.25 = Rs. 4,80,000$. Operating Cost = Cost of Revenue from Operations + Operating Expenses $= 4,80,000 + 60,000 = Rs. 5,40,000$. Operating Ratio = (Operating Cost / Revenue from Operations) $\times 100 = (5,40,000 / 6,00,000) \times 100 = 85\%$.