Question

Q 7 Sales are RS. 1,00,000, variable cost is Rs.
70,000 and fixed cost is Rs. 15,000. The P/V
ratio will be​

Answer 1

Answer:

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Step-by-step explanation:

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Answer 2

Given  : Sales are RS. 1,00,000

variable cost is Rs. 70,000

fixed cost is Rs. 15,000

To Find : The P/V ratio will be​

Solution:

Sales are RS. 1,00,000

variable cost is Rs. 70,000

fixed cost is Rs. 15,000

Total cost  = 70000 + 15000  = 85000

Profit = 100000 - 85000  = Rs 15000

P/V ratio  = profit volume ratio  

Contribution  = Sales - variable cost  

= 100000 - 70000

= 30000

P/V ratio = Contribution / Sales

= 30000/100000

= 3/10

or

P/V ratio  = ( Fixed cost + Profit ) / Sales

= (15000 + 15000)/100000

= = 30000/100000

= 3/10

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