Which of the factories listed in the options below has the lowest sales margin (sales margin = profit per kurta divided by selling price per kurta)?
Explanation:
Sales margin = profit per kurta / Selling price per kurta
Factory 2 = 800/5300 = 0.15
Factory 4 = 800/5500 = 0.145
Factory 5 = 600/5400 = 0.111
Factory 6 = 875 /6000 = 0.145
Factory 7 = 500 /4900 = 0.10
Thus, Factory 7 has the lowest sales margin.
Hence, option (e).
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