Question

If Sale is rs 250000 and PV ratio 40%, contribution Will be

Answer 1

Answer:

Contribution = 1,00,000/-

Explanation:

Contribution = Sales* PV Ratio

Contribution = 2,50,000*40%

Contribution = 1,00,000/-

Answer 2

Answer:

Contribution = 100000

Explanation:

Given:

• Sales = 250000

• PV ratio = 40%

Calculation of contribution:

Formula : PV ratio = Contribution ÷ Sales

Step 1 : 40% = Contribution ÷ 250000

Step 2: Contribution = 250000 X 40%

Step 3:  Contribution = 100000

Contribution is the difference between the sales and variable cost.