The table shows information supplied by a business: Sales ? Cost of goods sold ? Gross profit $400,000 Expenses ? Net profit ? Gross profit ratio (gross profit ÷ sales) 66.7% Net profit ratio (net profit ÷ sales) 50% Which row in the following table shows the sales and net profit for this business? A - HSC - SSCE Business Studies - Question 20 - 2017 - Paper 1

Using the calculated sales of $600,000 and the net profit ratio of 50%, we can find the net profit:

$$\text{Net Profit Ratio} = \frac{\text{Net Profit}}{\text{Sales}} imes 100$$

Rearranging the formula gives:

$$\text{Net Profit} = \text{Sales} \times \left(\frac{\text{Net Profit Ratio}}{100}\right) = 600,000 \times 0.50 = 300,000$$

From our calculations, we have found:

• Sales: $600,000
• Net Profit: $300,000

Referring back to the options provided:

• A: $66,700 /$50,000
• B: $200,000 /$100,000
• C: $600,000 /$200,000
• D: $600,000 /$300,000

The correct option that matches our calculations is D: $600,000 /$300,000.