Which sequence correctly lists the four catering businesses in order of largest to smallest average monthly profit after considering franchise fees?

Which sequence correctly lists the four catering businesses in order of largest to smallest average monthly profit after considering franchise fees?

• A. B, C, A, D
• B. A, B, C, D
• C. D, A, B, C
• D. C, B, D, A

Answer: (A)

Compare each catering business by the money it actually keeps after paying the franchise fee. The key is to look at net profit after fees, not gross profit. To rank from largest to smallest, you subtract the monthly franchise fee from each business’s monthly profit (net profit = profit before fees minus the fee) and then order those net amounts from highest to lowest. The correct sequence is the one that starts with the business that has the largest net profit after fees, followed by the next largest, and so on, ending with the smallest. This matches the data, so it’s the right ordering. If any ranking put a lower net profit ahead of a higher one, it wouldn’t reflect the actual after-fee profitability.

Compare each catering business by the money it actually keeps after paying the franchise fee. The key is to look at net profit after fees, not gross profit. To rank from largest to smallest, you subtract the monthly franchise fee from each business’s monthly profit (net profit = profit before fees minus the fee) and then order those net amounts from highest to lowest. The correct sequence is the one that starts with the business that has the largest net profit after fees, followed by the next largest, and so on, ending with the smallest. This matches the data, so it’s the right ordering. If any ranking put a lower net profit ahead of a higher one, it wouldn’t reflect the actual after-fee profitability.