Table shows, for six HP showrooms A to F in 2020 and 2021, the number of outlets, average sales per outlet (rupees lakh), and total profit of all outlets (rupees lakh).
| Showroom | Outlets 2020 | Outlets 2021 | Avg Sales 2020 | Avg Sales 2021 | Total Profit 2020 | Total Profit 2021 |
|---|---|---|---|---|---|---|
| A | 2 | 3 | 100 | 110 | 80 | 120 |
| B | 4 | 6 | 340 | 360 | 250 | 400 |
| C | 1 | 3 | 120 | 140 | 80 | 100 |
| D | 5 | 6 | 180 | 240 | 240 | 360 |
| E | 3 | 4 | 360 | 350 | 300 | 320 |
| F | 5 | 5 | 80 | 60 | 30 | 30 |
If the profitability per outlet is the ratio of the average profit per outlet to the average sales per outlet, then the profitability per outlet was the highest in 2020 for which HP showroom?
AA
BB
CC ✓ Correct
DD
Correct answer: (C) C
Explanation
Showroom C had the highest profitability per outlet in 2020, so the answer is C.
Profitability per outlet is the average profit per outlet divided by the average sales per outlet.
For showroom C the total profit of 80 over 1 outlet gives an average profit of 80.
Dividing this by the average sales of 120 gives about 0.67.
For A the value is 0.4, for B about 0.18 and for D about 0.27.
So showroom C has the highest value of about 0.67.
So the answer is C.
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