Profitability Ratios MCQs for Competitive Exams

MCQS

Profitability Ratios MCQs for Competitive Exams

Practice with answers, explanations, and exam-focused revision notes.

102 MCQs Page 5

Topic Notes: Profitability Ratios

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Profitability Ratios MCQs in Finance are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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41
Calculate the breakeven point in units if fixed costs are $40,000 and the contribution margin per unit is $800.
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42
The contribution margin is primarily utilized to cover which of the following financial obligations?
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43
XYZ Ltd. reports a Return on Total Assets of 8% on a total asset base of Rs. 5,000,000, with a Net Profit Ratio of 5%. Calculate the total sales for the firm.
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44
Calculate the dividend yield for a stock if the annual dividend paid is $20 and the current market price of the share is $50.
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45
What is the standard formula used to calculate the contribution margin?
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46
Which financial ratio is calculated by dividing net income available to common stockholders by total assets?
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47
Calculate the total revenue if the cost of goods sold is $8,000 and the gross margin is $5,000.
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48
Which financial figure serves as the denominator when calculating the Net Profit Ratio?
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49
Which ratio is used to determine the impact on net operating income resulting from a specific dollar change in total sales?
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50
How is Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) calculated?
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