What is the net profit ratio (net profit ÷ sales) for 2014?
(A) 10%
(B) 20%
(C) 25%
(D) 47% - HSC - SSCE Business Studies - Question 16 - 2015 - Paper 1
Question 16
What is the net profit ratio (net profit ÷ sales) for 2014?
(A) 10%
(B) 20%
(C) 25%
(D) 47%
Worked Solution & Example Answer:What is the net profit ratio (net profit ÷ sales) for 2014?
(A) 10%
(B) 20%
(C) 25%
(D) 47% - HSC - SSCE Business Studies - Question 16 - 2015 - Paper 1
Step 1
Calculate Net Profit Ratio
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Answer
To find the net profit ratio, we use the formula:
extNetProfitRatio=SalesNet Profit
You need to find the values of net profit and sales for the year 2014. Once you have these values, substitute them into the formula to calculate the ratio.
Step 2
Evaluate the Ratio Result
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Answer
After calculating the net profit ratio, convert the result into a percentage by multiplying by 100. For example, if the net profit ratio is 0.20, then:
0.20×100=20%
Thus, the correct answer choice based on this calculation would be (B) 20%.
