Question

Fixed Cost/ p/v Ratio =_
A) Break even point
B) Margin of safety
C) Contribution
D) Variable

Answer 1

Answer:

c is the correct answer

Answer 2

Option “C” is correct i.e. contribution.

• Fixed cost by p/v ratio is equal to contribution.

• The Profit Volume (P/V) ratio is mainly the extent of the rate of modification of profit due to a change in volume of sales.

•  It is one of the imperative ratios for calculating profitability as it indicates contribution made with respect to sales.

Hope it helped...