Quick question on N.P (1 Viewer)

[chriskoss]

For NP ratio, just say its 20,000/100,000
so 1:5
Do you leave it at that, I said 1:5/20%
But the actual answer (past hsc paper) says 0.2:1
Will I get marked down if I don't simplify it more, I dont see why you'd use a decimal in a fraction
Cheers

 

[michael1990]

For NP ratio, just say its 20,000/100,000
so 1:5
Do you leave it at that, I said 1:5/20%
But the actual answer (past hsc paper) says 0.2:1
Will I get marked down if I don't simplify it more, I dont see why you'd use a decimal in a fraction
Cheers

The formula is (Net Profit/Revenue) x100/1
So techniqually it should be 20%.
Or 0.2:1 expressed as a ratio.

In financial planning and management they use decimals not fractions.
You can't say its one fifth of a dollar to $1 just doesn't make sense.

 

[chriskoss]

Oh ok, because 0.2/1 would mean 20c for every dollar, so its expressed as financial figure.

I get it, thanks, so I'll just have to simply it further

Cheers