Assertion (A): A high operating ratio indicates a favourable position. Reasoning (R): A high operating ratio leaves a high margin to meet non-operating expenses.

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KollegeApply · Accepted Answer

Both (A) and (R) are incorrect. Explanation: A high operating ratio is unfavourable because it indicates that operating costs are high and operating profit is low. Also, a high operating ratio results in a narrow margin for non-operating expenses. Thus, both Assertion and Reason are incorrect.

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