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Options
- A
10%
-
12.5%
Correct answer
- C
15%
- D
20%
Why this is the answer
Let Operating Profit = Rs. 100. Sales = 200% of Operating Profit = Rs. 200. Operating Profit = 400% of Net Profit → Net Profit = 100 ÷ 4 = Rs. 25. Net Profit Margin = 25 ÷ 200 × 100 = 12.5%.
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