1. The local ice cream shop has had a great month in sales. Based on the Information below, calculate the operating ratio. cost of goods sold = $2,500.00
net sales = $18,200.00
operating expenses = $4,350.00
O 62 percent
O 38 percent
O 71 percent
O 32 percent

The operating ratio of the local ice cream shop is 38 percent

The cost of goods sold is $2,500

The net sales is $18,200

The operating expenses is $4,350

The operating ratio can be calculated as follows

= cost of goods sold+ operating expenses/total revenue

= 2500+4,350/18,200

= 6,850/18,200

= 0.376×100

= 37.6

= 38%

Hence the operating ratio is 38%  

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