ITPEC IP October 2019 Question 94
ITPEC IP October 2019 — Question 94 of 100
Both net sales per store and the operating profit ratio increase from 2015 through 2017. Sales per store are 6,000 / 300 = 20, 5,500 / 250 = 22, and 5,000 / 200 = 25. Operating margins are 600 / 6,000 = 10%, 1,000 / 5,500 ≈ 18.2%, and 1,200 / 5,000 = 24%.
Answer (c)
Why not others:
- total sales fall, but store count falls faster, so sales per store rise
- operating profit rises while sales fall, so the operating profit ratio clearly rises
- options (a), (b), and (d) incorrectly state that at least one of the two measures decreases
Key rule: Compare normalized measures: sales per store equals sales divided by stores, and operating margin equals operating profit divided by sales.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.