Think about quantities such as the number of goods sold, the total number of goods sold, the number of customers, etc.
See solution.
Practice makes perfect
Before we begin, please note that there are infinitely many ways and real-world situations in which a business would use a ratio. Here we will look at two possible scenarios.
First Scenario
One way in which a business can use ratios is to check whether they produce enough goods to match how many goods they are selling. For example, a bakery can use a ratio to see whether or not they are baking too much bread.
amount of bread sold/amount of bread baked
If this ratio was 13, it would mean that they only sold 1 loaf of bread out of 3 that they baked. Therefore, they could conclude that they have to bake less bread.
Second Scenario
Another way in which a business can use a ratio is to see if the costumers are willing to buy the products they are selling. They can use the following ratio to do this.
number of customers who buy product A/total number of customers
If this ratio was 80100 the company would have the information that 80 out of 100 customers buy product A, so they should always have it in stock.
