Given the following information, calculate the operating efficiency ratio:Rooms Revenue $646,000Food & Beverage Revenue $200,000Telecommunications Revenue $34,000Total Undistributed Operating Expenses $313,000 Group of answer choices0.610.520.360.64
Question
Given the following information, calculate the operating efficiency ratio:Rooms Revenue 646,000Food & Beverage Revenue 200,000Telecommunications Revenue 313,000 Group of answer choices0.610.520.360.64
Solution
To calculate the operating efficiency ratio, you need to follow these steps:
-
First, you need to calculate the total revenue. This is done by adding up all the different types of revenue. In this case, you have:
Rooms Revenue = 646,000 Food & Beverage Revenue = 200,000 Telecommunications Revenue = $34,000
So, Total Revenue = 200,000 + 880,000
-
Next, you need to calculate the operating efficiency ratio. This is done by dividing the total undistributed operating expenses by the total revenue. In this case, you have:
Total Undistributed Operating Expenses = 880,000
So, Operating Efficiency Ratio = 880,000 = 0.35568
Rounding to two decimal places, the operating efficiency ratio is 0.36. So, the correct answer from the given choices is 0.36.
Similar Questions
Which of the following ratios is used to measure a firm's efficiency?
Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 133 furniture pieces per day and produces 113 furniture pieces per day. Their design capacity is 140 units per day.What is the facility's efficiency rate? Write your answer as a percentage.Display your answer to two decimal places. %What is the facility's utilization rate? Write your answer as a percentage.Display your answer to two decimal places. %
According to some experiment, there is about _____________ per cent increased efficiency in employees who worked from home. Type your answer, in numeric form, into the space provided
Purchases Rs. 7,20,000; Office expenses Rs. 30,000; Selling expenses Rs. 90,000; Opening inventory Rs. 1,40,000; Closing inventory Rs. 80,000; Revenue from operations Rs. 12,00,000. Calculate Operating Ratio
The following information is available.$direct materials 20 000direct labour 45 000direct expenses 6 000variable overheads 11 000fixed overheads 38 000sales 240 000What is the contribution to sales ratio?A 50% B 54.58% C 65.83% D 70.42%
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.