25. Which company has the highest annual profit per employee?

\begin{tabular}{|c|ccc|}
\hline
Company & \begin{tabular}{c}
Company Annual \\
Profit (\pounds)
\end{tabular} & \begin{tabular}{c}
Cost to Buy \\
Company (\pounds)
\end{tabular} & \begin{tabular}{c}
Number of \\
Employees
\end{tabular} \\
\hline
A & 20,000 & 18,000 & 5 \\
\hline
B & 26,000 & 25,000 & 8 \\
\hline
C & 21,000 & 20,000 & 8 \\
\hline
D & 30,000 & 30,000 & 18 \\
\hline
\end{tabular}

A. Company A

B. Company B

C. Company C

D. Company D



Answer :

To determine which company has the highest annual profit per employee, we need to calculate the profit per employee for each company. Here's the step-by-step solution:

1. Calculate the profit per employee for each company:
- Company A: Profit = £20,000, Number of Employees = 5
[tex]\[ \text{Profit per Employee for Company A} = \frac{£20,000}{5} = £4,000 \][/tex]

- Company B: Profit = £26,000, Number of Employees = 8
[tex]\[ \text{Profit per Employee for Company B} = \frac{£26,000}{8} = £3,250 \][/tex]

- Company C: Profit = £21,000, Number of Employees = 8
[tex]\[ \text{Profit per Employee for Company C} = \frac{£21,000}{8} = £2,625 \][/tex]

- Company D: Profit = £30,000, Number of Employees = 18
[tex]\[ \text{Profit per Employee for Company D} = \frac{£30,000}{18} \approx £1,666.67 \][/tex]

2. Compare the profit per employee:
- Company A: £4,000
- Company B: £3,250
- Company C: £2,625
- Company D: £1,666.67

3. Identify the company with the highest profit per employee:
- The highest profit per employee is £4,000, which is for Company A.

Thus, the company with the highest annual profit per employee is Company A.