The correct answer is A. Rs. 15,000.
Total Assets Turnover is a measure of how efficiently a company uses its assets to generate sales. It is calculated by dividing net sales by total assets. Net Profit is a measure of a company’s profitability. It is calculated by dividing net income by net sales. Total Assets is the total value of a company’s assets.
In this question, we are given the following information:
- Total Assets Turnover = 4
- Net Profit = 10%
- Total Assets = Rs. 50,000
We can use this information to calculate net profit as follows:
Net Profit = Total Assets Turnover * Net Profit Margin * Total Assets
Net Profit = 4 * 10% * Rs. 50,000
Net Profit = Rs. 15,000
Therefore, the correct answer is A. Rs. 15,000.
Here is a brief explanation of each option:
- Option A: Rs. 15,000. This is the correct answer. It is calculated by multiplying total assets turnover, net profit margin, and total assets.
- Option B: Rs. 10,000. This is the net profit margin. It is calculated by dividing net income by net sales.
- Option C: Rs. 25,000. This is the total assets turnover multiplied by the net profit margin. It is a measure of how efficiently a company uses its assets to generate sales.
- Option D: Rs. 20,000. This is the net profit margin multiplied by total assets. It is a measure of a company’s profitability.