Question

The Third Quarter Report of a Company gives following

information about Segment Performance:

Segment Sales (Rs.) NetProfit (Rs.)

Water Purifier 40,00,000 80,000

Air Purifier 60,00,000 1,60,000

Fashion Accessories 80,00,000 1,20,000

From the above data, find out which is the best segment and which

segment should be discontinued if the company has to discontinue and segment​

Answer 1

Answer:

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$let \: the \: whole \: quantity \: = x$

$A/Q$

$5\% \: of \: x = 600 \\ \\ = > \frac{5 \times x}{100} = 600 \\ \\ \\= > 5 \times x = 600 \times 100 \\ \\ \\ \ \: = > x = \frac{600 \times 100}{5} \\ \\ \: \\ = > x = \frac{120 \times 100}{1} \: \\ \\ x = 12000$

Therefore, The whole quantity = 12000

Answer 2

Answer:

To determine which segment is the best and which should be discontinued, we need to analyze the data provided in the company's Third Quarter Report.

Explanation:

Firstly, we can calculate the profit margin for each segment by dividing the net profit by the segment sales. The profit margins for each segment are as follows:

Water Purifier: 2%

Air Purifier: 2.67%

Fashion Accessories: 1.5%

From this, we can see that the Air Purifier segment has the highest profit margin, followed by the Water Purifier segment and the Fashion Accessories segment. This suggests that the Air Purifier segment is the best-performing segment.

However, we also need to consider the absolute profit generated by each segment. In this case, the Air Purifier segment generates the highest absolute profit of Rs. 1,60,000, followed by the Fashion Accessories segment with a profit of Rs. 1,20,000 and the Water Purifier segment with a profit of Rs. 80,000. This further supports the idea that the Air Purifier segment is the best-performing segment.

To determine which segment should be discontinued, we can look at the net profit generated by each segment. In this case, the Water Purifier segment generates the lowest net profit of Rs. 80,000. Therefore, if the company has to discontinue any segment, it should consider discontinuing the Water Purifier segment.

In conclusion, the Air Purifier segment is the best-performing segment with the highest profit margin and absolute profit. On the other hand, the Water Purifier segment generates the lowest net profit and should be considered for discontinuation if the company has to discontinue any segment.

To learn more about the data, click on the link below.

https://brainly.in/question/1512839

To learn more about Third Quarter Report, click on the link below.

https://brainly.in/question/10658

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