The following segmental information is provided for Powerage Ltd.
$\begin{array}{lcccc}
&\text { Audio America } & \text { Audio Europe } & \text { Visual America } & \text { Visual Europe } \
&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}\\
\text { Sales } & 600 & 360 & 70 & 120 \
\text { Operating profit } & 18 & 20 & 17 & 16 \
\text { Net operating assets } & 240 & 300 & 30 & 40
\end{array}$

Which segment has the lowest profit sales ratio?
A) Audio America
B) Audio Europe
C) Visual America
D) Visual Europe

Question

The following segmental information is provided for Powerage Ltd.
$\begin{array}{lcccc}
&\text { Audio America } & \text { Audio Europe } & \text { Visual America } & \text { Visual Europe } \
&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}\\
\text { Sales } & 600 & 360 & 70 & 120 \
\text { Operating profit } & 18 & 20 & 17 & 16 \
\text { Net operating assets } & 240 & 300 & 30 & 40
\end{array}$

Which segment has the lowest profit sales ratio?
A) Audio America
B) Audio Europe
C) Visual America
D) Visual Europe

Quizplus · Accepted Answer

The profit sales ratio is calculated by dividing the operating profit by the sales for each segment. For Audio America, it's $18 / 600 = 0.03$ or 3%, which is the lowest among the given options.

The Following Segmental Information Is Provided for Powerage Ltd Which Segment Has the Lowest Profit Sales Ratio? A) Audio

The Following Segmental Information Is Provided for Powerage Ltd Which Segment Has the Lowest Profit Sales Ratio?
A) Audio