Question

9
When the sales incraease from Rs 40,000 to Rs 60,000 and profit increases by Rs. 5,000, the P/V ratio is -
0.2
0.3
0.25
0.4

Answer 1

Answer:

Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000

Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000PV Ratio = Increase in Profit / Increase in sales

Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000PV Ratio = Increase in Profit / Increase in sales= 5000 / 20000 = 0.25

Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000PV Ratio = Increase in Profit / Increase in sales= 5000 / 20000 = 0.25So the Answer is 0.25