Which of the following shows the gross profit and the net profit ratio for this business in 2020?
Gross profit Net profit ratio (net profit ÷ sales)
A - HSC - SSCE Business Studies - Question 17 - 2020 - Paper 1
Question 17
Which of the following shows the gross profit and the net profit ratio for this business in 2020?
Gross profit Net profit ratio (net profit ÷ sales)
A. $105 000 28.... show full transcript
Worked Solution & Example Answer:Which of the following shows the gross profit and the net profit ratio for this business in 2020?
Gross profit Net profit ratio (net profit ÷ sales)
A - HSC - SSCE Business Studies - Question 17 - 2020 - Paper 1
Step 1
Gross Profit Calculation
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Answer
To determine the correct option, we need to ascertain the values of gross profits and the corresponding net profit ratios. The gross profit options provided are 105,000and130,000.
Step 2
Net Profit Ratio Analysis
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Answer
The net profit ratio options range from 28.0% to 47.0%. To find the correct match, we must analyze the given ratios with respect to each gross profit. We will assume that the net profit figures correspond to each gross profit option to check which fits.
Step 3
Matching Criteria
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Answer
Following through the options:
For 130,000grossprofit,thenetprofitratioof34.544,850, which balances the figures well. Therefore, the correct answer is Option C.
