Given the following information:

Particulars	Amount (Rs.)
Revenue from Operations	3,40,000
Cost of Revenue from Operations	1,20,000
Selling expenses	80,000
Administrative Expenses	40,000

Calculate Operating ratio.

Operating Ratio measures the relationship between operating costs and revenue from operations. It is expressed as a percentage.

The formula is:

Operating Ratio = $\frac{\text{Operating Cost}}{\text{Revenue from Operations}} \times 100$

where Operating Cost = Cost of Revenue from Operations + Operating Expenses

Calculation of Operating Cost:

Operating Cost = Cost of Revenue from Operations + Selling Expenses + Administrative Expenses

Operating Cost = 1,20,000 + 80,000 + 40,000 = 2,40,000

Calculation of Operating Ratio:

Operating Ratio = $\frac{2,40,000}{3,40,000} \times 100$

Operating Ratio = 0.7059 × 100 = 70.59%

The result is a percentage (not "times") because Operating Ratio expresses operating costs as a proportion of sales revenue. A ratio of 70.59% means that for every Rs. 100 of revenue, Rs. 70.59 is spent on operating costs.

Correct Option: 4 (70.59%)