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.

Defining profitability as the ratio of net profit to sales, IVP Ltd, recorded the highest profitability in

• A. 1998-99
• B. 1997-98
• C. 1994-95
• D. 1996-97

Answer 1

The correct option is B 1997-98

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