Calaculate P/V ratio :
Sales - Rs, 250000
Variable Cost -Rs.150000
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Answer:
Contribution = Sales - Variable Cost
Contribution = 250000 - 150000
Contribution = 100000
P/V Ratio = Contribution÷ Sales ×100
= 100000/250000*100
= 40%
Note: Contribution is the sum of Fixed Cost and Profit.
Explanation:
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