Question

B.E. point Rs 40,000,fixed cost Rs 15,000. what the P/V ratio?​

Answer 1

Answer:

Formula of Finding PV Ratio with the help of BE Point:

Break Even = Fixed Cost/PV Ratio

  40000      = 15000/P V Ratio

PV Ratio      = 15000/40000

PV Ratio      = 0.375 or 37.5 %

Explanation:

Answer 2

P/V ratio = 37.5 %

Explanation:

Given:

B.E. Point = 40,000

Fixed cost = 15,000

Find:

P/V ratio = ?​

Computation:

P/V ratio = Fixed cost / B.E. Point

P/V ratio = 15,000 / 40,000

P/V ratio = 0.375

P/V ratio = 37.5 %

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