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Question

When operating ratio is 91.5%, the operating profit ratio will be __________.

A
191.5%
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B
8.5%
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C
100%
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D
None of these
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Solution

The correct option is D 8.5%
Operating ratio + Operating profit ratio = 1
So, 91.5/100 + Operating profit ratio = 1
Therefore,
Operating profit ratio = 8.5%

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