Question

if pv ratio is 0.4 and selling price per unit is 40 then what is marginal cost?

Answer 1

Explanation:

Selling price per unit. Rs.40. Marginal cost per unit. Rs.24. Fixed cost per annum ... So, (A) P/V Ratio = Contribution/sales x 100 ... B.E.S. x P/V Ratio = F (Value of P is zero at BE Sales).

Answer 2

Answer:

Marginal / Variable cost = 24

Explanation:

Given:    

PV ratio  40%  

Selling Price Per unit   40    

 

Formula: PV ratio = (Selling Price - Variable cost) ÷ Selling Price

Calculation:    

Step 1 :            40% = (40- Variable cost)÷40  

Step 2 :        40% (40) = 40- Variable cost

   

Step 3 :                 16 = 40- Variable cost

Step 4 : Variable cost = (40- 16) =24