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Rahul's net sales in the preceding quarter were Rs 100,000, and he spent a total of Rs 75,000 on various expenses. What will be Rahul's total profit margin?

36. Rahul's net sales in the preceding quarter were Rs 100,000, and he spent a total of Rs 75,000 on various expenses. What will be Rahul's total profit margin?

1. 20%
2. 10%
3. 25%
4. 50%

Answer

The correct answer is: C) 25%

Explanation

We can use the following calculation to get Rahul's overall profit margin:

Profit Margin = (Net Profit / Net Sales) * 100

And, Net Profit = Net Sales - Total Expenses

Net Profit = 100,000 - 75,000 = 25,000

Now, we can calculate the profit margin:

Profit Margin = (25,000 / 100,000) * 100 = 25%

Rahul's entire profit margin is thus 25%.