Question

004 sachhi tum mere frnd ho ya aisi........​

Answer 1

Answer:

Answer: 40%

Explanation:

We know that,

\small \tt{P/V \: Ratio \: = \: { \frac{Marginal \: Contribution } {Sales} } \times 100}P/VRatio=

Sales

MarginalContribution

×100

Contribution = Sales - Variable Cost

= 1,00,000 - 60,000

= Rs. 40,000

Thus, \tt{P/V \: Ratio = \frac{40,000} {1,00,000 } \times 100}P/VRatio=

1,00,000

40,000

×100

= 40%

Thus, The P/V Ratio is 40% or 40/100.

P/V Ratio (Profit Volume Ratio) is the relationship between Profit, Volume & Cost of Production.

It is also known as Contribution Marginal Ratio or Marginal Income or Variable Profit Ratio.

It is generally expressed in % and also in Rs.

Another formula for calculating P/V Ratio is \tt\frac{Change \: in \: Profit}{Change \: in \: Sales } \times 100

ChangeinSales

ChangeinProfit

×100