The correct answer is A. 14%.
The profit volume ratio is a measure of a company’s profitability. It is calculated by dividing the company’s profit by its sales. In this case, the profit volume ratio is 14%. This means that for every Rs. 100 in sales, the company makes a profit of Rs. 14.
The profit volume ratio is a useful tool for comparing the profitability of different companies. It can also be used to track a company’s profitability over time.
Option B is incorrect because it is the contribution margin ratio. The contribution margin ratio is calculated by dividing the company’s contribution margin by its sales. The contribution margin is the amount of revenue that remains after the company has paid for its variable costs.
Option C is incorrect because it is the gross profit margin ratio. The gross profit margin ratio is calculated by dividing the company’s gross profit by its sales. The gross profit is the amount of revenue that remains after the company has paid for its cost of goods sold.
Option D is incorrect because it is not a valid answer.