ITPEC IP October 2019 Question 94
From the table shown below that indicates changes in the performance of retail company A with multiple stores, which of the following can be read?
Explanation
Net sales per store and the operating profit ratio are both increasing — divide sales by stores, and operating profit by sales, for each year.
Sales per store are in 100 million yen. Total sales fall, but the number of stores falls faster, so each store sells more; operating profit rises while sales fall, so the ratio rises too.
Answer (c)
Why not others:
- •(a) and (b) — read the falling total net sales as falling sales per store; per store, sales rise from 20 to 25
- •(b) and (d) — say the operating profit ratio decreases, but profit grows while sales shrink, so the ratio rises from 10% to 24%
Key rule: Totals can fall while per-unit figures rise; compute the ratio the option names (sales ÷ stores, profit ÷ sales) instead of judging from the raw totals.
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