Question

Determine p/v ratio if sales is rs 1,00,000, fixed cost is rs 30,000 and profit is rs 20,000.

Answer 1

profit volume ratio = (profit + fixed cost / sales )*100

=(20,000+30,000/1,00,000)*100

=(50,000/1,00,000)*100

=(0.5)*100

=50%

profit volume ratio=50%

Hope its useful.!!

Answer 2

P.V ratio = 50%

Explanation:

Given:

Amount of sales = 1,00,000

Fixed cost = 30,000

Amount of profit = 20,000

P.V ratio = ?

Computation:

$P.V ratio = \frac{Fixed \ cost + Profit}{Sales} \times 100$

$P.V ratio = \frac{30,000+20,000}{1,00,000} \times 100$

$P.V ratio = \frac{50,000}{1,00,000} \times 100$

$P.V ratio = 0.50 \times 100$

$P.V ratio = 50%$%

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