Question

If P/V Ratio is 25%, then what is the % of Variable Cost?
(a) 70%
(b) 80%
(c) 3/4
(d) 1/2​

Answer 1

Answer:

75 is the answer.

Explanation:

Let's assume the total cost as 100.

If P/V is 25%, then Variable cost will be,

= 100-25

= 75

Answer 2

Answer:

$75\%$

Explanation:

The Profit Volume (P/V) Ratio is the measurement of the rate of change of profit with respect to the volume of sales.

P/V ratio = contribution x 100/sales

If the P/V ratio is $25\%$, then

variable cost $= 100-25$

                      $75\%$

Hence, Variable Cost =  $75\%$

#SPJ3