. If compensation of employees in a firm constitutes 55% of net value added at factor cost of a firm,find the proportion of operating surplus.

To find the proportion of operating surplus, we need to subtract the compensation of employees from the net value added at factor cost of the firm.

Step 1: Calculate the operating surplus. Operating surplus = Net value added at factor cost - Compensation of employees

Step 2: Calculate the proportion of operating surplus. Proportion of operating surplus = Operating surplus / Net value added at factor cost

Given that the compensation of employees constitutes 55% of the net value added at factor cost, we can calculate the proportion of operating surplus as follows:

Proportion of operating surplus = (Net value added at factor cost - Compensation of employees) / Net value added at factor cost

Let's assume the net value added at factor cost is represented by X.

Compensation of employees = 55% of X = 0.55X

Operating surplus = X - 0.55X = 0.45X

Proportion of operating surplus = (0.45X) / X = 0.45

Therefore, the proportion of operating surplus is 0.45 or 45%.