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Q: How do you calculate operating cost ratio?
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Cost to income ratio?

operating expenses/operating income


How to compute cost to income ratio?

A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.


How do you calculate the following sales price of 110 fixed cost 385500 expect to sell 11000 units next year with operating income of 125550 Need variable cost per unit and contribution margin ratio?

Revenue (11000 * 110) 1210000fixed Cost 385500variable cost 698950 (balance figure)Operating Income 125550Variable cost per unit = 698950/11000variable cost per unit = 63.54Contribution margin ratio = (Sales - Variable cost) / Sales * 100Contribution margin ratio = (1210000 - 698950 ) / 1210000Contribution margin ratio = 0.42 or 42%


How do you calculate the cost of operating a 500 watt devise?

W*cost*khw/1000


How do you calculate operating profit?

Sales Les: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income


How is bank cost to income ratio calculated?

The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact. The cost/income ratio reflects changes in the cost/assets ratio. The cost income ratio, defined by operating expenses divided by operating income, can be used for benchmarking by the bank when reviewing its operational efficiency. Francis (2004) observes that there is an inverse relationship between the cost income ratio and the bank's profitability. Ghosh et al. (2003) also find that the expected negative relation between efficiency and the cost-income ratio seems to exist. The study shows that the cost-income ratio is negative and strongly significant in all estimated equations, indicating that more efficient banks generate higher profits.


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


What is a strong cost to income ratio?

A strong cost to income ratio is a low ratio, typically below 50%. This indicates that a company's operating costs are relatively low compared to its income, indicating efficient operations and good financial management. A low ratio suggests that a company is able to generate significant profits while keeping costs under control, which is favorable for investors and stakeholders.


How to Calculate a 100 bed hospital's operating expenditure?

Pretty much the same as you would calculate the cost for any business. You would add the fixed cost and the variable cost.


How do you calculate the break even point for EBIT?

Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.


How do you calculate the aspect ratio of a duct?

The aspect ratio of a duct can be evaluated as the ratio of width to height. As the aspect ratio increases, vibration noise, friction and cost also increases.


How do calculate break even point?

Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales