Quickest way to achieve healthy operating ratio

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Reference no: EM132226570

1) Determine the operating Ratio from the following data Net sales = $200K Cost of goods sold = $120K Admin expenses = $20K selling expense = $20K Interest charges = $10K 2) Explain what operating ratio is and from your answer to part 1 how do you the ratio and what is its significance. 3) What if the ratio were half of the calculated value - what and how would this change your answer to part 2. 4) What is the quickest way to achieve a healthy operating ratio.

Reference no: EM132226570

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