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<p><strong>(a)20%,</strong></p> <p><strong>(b)50%,</strong></p> <p><strong>(c)10%,</strong></p> <p><strong> (d)40%.</strong></p>
Answer is #
(a)20%
Net profit ratio = (Net Income / Net Sales) X100
Net Profit Ratio= ((Gross profit-Expenses)/Net Sales)X100
Net Profit Ratio= ((2,000,000-1,000,000)/5,000,000)X100
Net Profit Ratio=20%
(A)-20%
Formula: (Net profit / Net sales) x100
Net Profit:100K
Net Sales:500K
Net Profit% (100000/500000)*100=20%
Here Capital is given just for knowledge or you may assume, just to create confusion
20% is the correct answer ............
Here Net Profit= Gross Profit-Expenses==100,000
So the % of Net Profit =(Net Profit/Sales)*100=20%
Net Profit ratio is20%
OF COURSE ANWER A
NET PROFIT RATIO =NET INCOME / NET SALES
=100000/500000=20%
20% on sales
A. (is correct)
