Question

A railwya has an operating ratio of 78%. If uts operating revenue were for $ 4.6 B for 205what were its operating expenses

Answer 1

Its operating expenses were $ 3.588 B

Step-by-step explanation:

The operating ratio is the ratio of operating expense to the operating or revenue generated.

This ratio is used for comparison of results from the operations of various industries.

Given that the operating ratio of 78% and the operating revenue is $4.6B, the operating expense T may be computed as

78% = T/4.6 * 100%

T = 4.6 *.78

= $3.588 B