Study the given bar-graph and answer the question that follows.

The bar-graph gives the sales and profit (both in Rs. cr.) of company Z across four years.

9-5-2025 IMG-1295 Nishi Dhariwal 1

What was the approximate percentage profit margin on revenue of company Z in 2016?

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  1. 70%
  2. 54.64%
  3. 41.18%
  4. 60%

Answer (Detailed Solution Below)

Option 3 : 41.18%
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Detailed Solution

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Given:

Sales in 2016 = Rs. 2057 cr

Profit in 2016 = Rs. 847 cr

Concept and Formula used:

Profit Margin Percentage = (Profit / Sales) × 100

Calculation:

⇒ Profit Margin Percentage = (847 / 2057) × 100

⇒ Profit Margin Percentage ≈ 0.4118 × 100

⇒ Profit Margin Percentage ≈ 41.18%

∴ The approximate percentage profit margin on revenue of company Z in 2016 is 41.18%.

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