Question

fixed cost Rs.4000,BEP Rs.10000.P/V ratio will be​

Answer 1

Answer:

(a)P/V ratio. (b) break even sales (c) sales to earn a profit of Rs. 2,000 (d) Profit ... (at B.E.P. contribution is equal to fixed cost) ... P/V Ratio b. Sales & c. Margin of Safety. Fixed Cost = Rs.40, 000. Profit

Answer 2

Answer:

The P/V ratio is 40%.

Explanation:

Given,

Fixed cost- 4000

BEP-10000

To find

P/V ratio

Step 1

• P/V ratio = Contribution/ Sales.
• It exists utilized to calculate the profitability of the business.
• It is utilized to measure the status of the contribution created at various volumes of sales.

B.E.P =. F.C / P/V ratio × 100

10000 = 4000/PV ratio × 100

PV ratio = 4000/10000 × 100

Thus,

P/V ratio = 40% .

Therefore, The P/V is 40%.