Which of the following describes the change in gross profit ratio and expense ratio from 2014 to 2015?
Gross profit ratio (gross profit ÷ sales)
Expense ratio (total expenses ÷ sales)
(A) Improved
(B) Improved
(C) Worse
(D) Worse - HSC - SSCE Business Studies - Question 17 - 2015 - Paper 1
Question 17
Which of the following describes the change in gross profit ratio and expense ratio from 2014 to 2015?
Gross profit ratio (gross profit ÷ sales)
Expense ratio (tot... show full transcript
Worked Solution & Example Answer:Which of the following describes the change in gross profit ratio and expense ratio from 2014 to 2015?
Gross profit ratio (gross profit ÷ sales)
Expense ratio (total expenses ÷ sales)
(A) Improved
(B) Improved
(C) Worse
(D) Worse - HSC - SSCE Business Studies - Question 17 - 2015 - Paper 1
Step 1
Gross profit ratio (gross profit ÷ sales):
96%
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Answer
To determine whether the gross profit ratio improved or worsened from 2014 to 2015, analyze the calculated values or any data provided on gross profit and sales for both years. If the gross profit ratio increased, it can be classified as improved; if it decreased, it worsened.
Step 2
Expense ratio (total expenses ÷ sales):
99%
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Answer
Similarly, evaluate the expense ratio by comparing the total expenses and sales in both years. An increase in the expense ratio indicates a worsening situation, while a decrease shows improvement.
Step 3
Final Conclusion:
96%
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Answer
Based on marking scheme insights, both the gross profit ratio and the expense ratio improved from 2014 to 2015. Thus, the correct answer is (A) Improved for both ratios.
