4. Company A spends R150 000 on advertising and makes a profit of R1 200 while company B spends R250 000 and makes a profit of R2 000 000. Calculate the ratio of the money spent on advertising to the profit in each.

To calculate the ratio of money spent on advertising to the profit for each company, follow these steps: 1. **Determine the ratio for each company:** - **Company A:** - Advertising Spend: R150,000 - Profit: R1,200 - Ratio: \( \frac{150,000}{1,200} = 125 \) - **Ratio:** **125:1** *(This means Company A spends R125 on advertising for every R1 of profit.)* - **Company B:** - Advertising Spend: R250,000 - Profit: R2,000,000 - Ratio: \( \frac{250,000}{2,000,000} = 0.125 \) - **Ratio:** **1:8** *(This means Company B spends R1 on advertising for every R8 of profit.)* 2. **Summary of Ratios:** - **Company A:** 125:1 - **Company B:** 1:8 **Interpretation:** - **Company A** spends significantly more on advertising relative to its profit, indicating a higher advertising cost per unit of profit. - **Company B** has a more efficient advertising spend relative to its profit, spending less on advertising for each unit of profit earned.