Question

Which firm has the highest profitability?

• A. A
• B. B
• C. C
• D. D
• A. 55%
• B. 45%
• C. 35%
• D. 50%

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
Profitability of a firm is its own profit written as a percentage of its own sales. We must find the firm whose percentage is the largest.
The table also shows operating costs and interest costs, but the profit row is already given, so we use the profit row directly.

Step 2: Key Formula or Approach:
For each firm we compute
\[ \text{Profitability} = \frac{\text{Profit}}{\text{Sales}} \times 100 \]
We do not compare raw profit amounts, because a firm with big sales can show a big profit and still earn a low percentage.

Step 3: Profitability of firm A.
\( \frac{4914}{24568} \times 100 \). Since \( 24568 \times 0.20 = 4913.6 \), and the profit 4914 is just a little above that, the value is about 20.0%.

Step 4: Profitability of firm B.
\( \frac{4075}{25468} \times 100 \). Since \( 25468 \times 0.16 = 4074.88 \), the value is about 16.0%.

Step 5: Profitability of firm C.
\( \frac{4750}{23752} \times 100 \). Since \( 23752 \times 0.20 = 4750.4 \), and the profit 4750 is just a little below that, the value is about 20.0% (19.998%).

Step 6: Profitability of firm D.
\( \frac{3946}{15782} \times 100 \). Since \( 15782 \times 0.25 = 3945.5 \), the value is about 25.0%.

Step 7: Compare and rule out the other options.
The percentages are A = 20.0%, B = 16.0%, C = 20.0%, D = 25.0%.
Option (1), firm A, has the largest profit in rupees (4,914 is the highest of the four), but only 20% of its sales, so it is not the best.
Option (2), firm B, has the lowest percentage, 16%.
Option (3), firm C, is also about 20%, below D.
Option (4), firm D, has the smallest sales but the best percentage, 25%.

Final Answer:
Firm D earns 25% of its sales as profit, more than any other firm, so option (4) is correct. \[ \boxed{\text{Option (4): D}} \]

Answer 2

Step 1: Understanding the Question:
If A takes over B, their sales add up. We need that combined sales figure as a percentage of the total sales of the whole industry, which is given in the Total column.

Step 2: Key Formula or Approach:
\[ \text{Market share} = \frac{\text{Sales of A} + \text{Sales of B}}{\text{Total sales}} \times 100 \]

Step 3: Add the sales of A and B.
Sales of A = 24,568 and sales of B = 25,468.
\[ 24568 + 25468 = 50036 \]

Step 4: Divide by the industry total.
The total sales of the industry are 89,570.
\[ \frac{50036}{89570} \times 100 \approx 55.86\% \]
To see this without a calculator: \( 89570 \times 0.55 = 49263.5 \) and \( 89570 \times 0.56 = 50159.2 \). The number 50,036 lies between the two, very close to the upper one, so the share is between 55% and 56%.

Step 5: Pick the closest option and rule out the rest.
The question says approximately, so we choose the option closest to 55.86%.
Option (1), 55%, is within about 0.9 percentage points, so it fits.
Option (2), 45%, would need sales of only about 40,307, far less than 50,036.
Option (3), 35%, would need only about 31,350, which is even further away.
Option (4), 50%, would need 44,785, which is more than 5,000 below the actual 50,036.

Final Answer:
A and B together hold about 55.9% of the market, and the nearest option is 55%, which is option (1). \[ \boxed{\text{Option (1): 55\%}} \]