Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M,what is your operating ratio?
A) 140.00
B) 68.12
C) 71.41
D) Not enough information to tell

Question

Quizplus · Accepted Answer

The operating ratio is calculated by dividing operating expenses by operating revenue and multiplying by 100. 
Operating Ratio = (Operating Expenses/Operating Revenue) x 100 
Operating Ratio = ($10M/$14M) x 100 
Operating Ratio = 0.7141 x 100 = 71.41 
Therefore, the operating ratio is 71.41.

Looking at Your Profit and Loss Statement You Note That