Question

The figure below represents sales and net profit (in Rs. crore) of IVP Ltd. For the 5 yr from 1994-99. During this period, the sales increased from Rs 100 crore to Rs 680 crore. Correspondingly, the net profit increased from Rs 2.5 crore to Rs 12 crore. Net profit is defined as the excess of sales over total costs.

With profitability as defined in question 200, it can be concluded that

• A. profitability is non-decreasing during the 5 yr from 1994-95 to 1998-99
• B. profitability is non-increasing during the 5 yr from 1994-95 to 1998-99
• C. profitability remained constant during the 5 yr from 1994-95 to 1998-99
• D. None of the above

Answer 1

The correct option is D None of the above

Option (D) is the correct answer. Check the video for the approach.