The correct answer is A. 20%.
The profit-volume ratio is a measure of a company’s profitability. It is calculated by dividing the company’s profit by its sales revenue. In this case, the profit-volume ratio is 20%, which means that the company makes a profit of 20% of every dollar it sells.
The other options are incorrect because they do not represent the correct percentage of profit. Option B, 33%, is the contribution margin ratio, which is calculated by dividing the company’s contribution margin by its sales revenue. The contribution margin is the amount of revenue that is left over after the company has paid for its variable costs. Option C, 40%, is the operating profit margin, which is calculated by dividing the company’s operating profit by its sales revenue. The operating profit is the company’s profit before interest and taxes. Option D, 60%, is the net profit margin, which is calculated by dividing the company’s net profit by its sales revenue. The net profit is the company’s profit after interest and taxes.