Question

PRIYANKA
Question 7 :
What is the P/V Ratio if Selling Price Per Unit
is Rs. 20, Variable Cost per unit is Rs. 8 ?
20%
25%
50%
60%​

Answer 1

Answer:

60 %

P / V Ratio = 60 %

Explanation:

Given :

Selling Price Per Unit = Rs. 20

Variable Cost per unit = Rs. 8

To find :

P/V Ratio

Solution :

★ Profit Volume Ratio (P / V Ratio) :

$\sf{P/V\:Ratio =\dfrac{(Sales \: - \: Variable \: Cost)}{Sales} \: \times 100}$

Selling Price = Rs. 20

Variable Cost = Rs. 8

$\sf{\longrightarrow{\dfrac{(20 \: - \: 8)}{20} \: \times \: 100}}$

$\sf{\longrightarrow{\dfrac{12}{20} \: \times 100}}$

$\sf{\longrightarrow{\dfrac{12}{20} \: \times \: 100 \: = \: 60 \: \%}}$

Therefore,

60 %

P / V Ratio = 60 %

Answer 2

Answer:

Given :-

• Selling Price per unit is Rs 20 and variable cost per unit is Rs 8.

To Find :-

• What is the P/V Ratio.

Formula Used :-

${\purple{\boxed{\small{\bold{P/V\: Ratio =\: \dfrac{Sales - Variable\: Cost}{Sales} \times 100}}}}}$

Solution :-

Given :

• Selling price or sales = Rs 20
• Variable Cost = Rs 8

According to the question by using the formula we get,

$\implies$ $\sf P/V\: Ratio =\: \dfrac{20 - 8}{20} \times 100$

$\implies$ $\sf P/V\: Ratio =\: \dfrac{12}{20} \times 100$

$\implies$ $\sf P/V\: Ratio =\: \dfrac{12 \times 100}{20}$

$\implies$ $\sf P/V\: Ratio =\: \dfrac{120\cancel{0}}{2\cancel{0}}$

$\implies$ $\sf P/V\: Ratio =\: \dfrac{\cancel{120}}{\cancel{2}}$

$\implies$ $\sf\bold{\purple{P/V\: Ratio\: =\: 60\%}}$

Hence, the correct options is option no (1) is 60%.

${\underline{\boxed{\bold{\bf{\therefore The\: P/V\: Ratio\: is\: 60\%\: .}}}}}$