The correct answer is A. Rs. 5,000.
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.
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 income as follows:
Net income = (Net profit / Total assets turnover) * Total assets
Net income = (10% / 4) * Rs. 50,000
Net income = Rs. 5,000
Therefore, the amount of net profit would be Rs. 5,000.
Option A is the correct answer because it is the only option that is consistent with the given information. Option B is incorrect because it is twice the amount of net profit that would be expected based on the given information. Option C is incorrect because it is four times the amount of net profit that would be expected based on the given information. Option D is incorrect because it is five times the amount of net profit that would be expected based on the given information.