Question

Question 13)
Required Sales =
Volume Ratio
---- + Desired Profit/ Profit
Variable Cost
A)
B)
Contribution
Total Sales
C
D)
Fixed Cost​

Answer 1

Answer:

The Profit/volume ratio, which is also called the ‘contribution ratio’ or ‘marginal ratio’, expresses the relation of contribution to sales and can be expressed as under:

The Profit/volume ratio, which is also called the ‘contribution ratio’ or ‘marginal ratio’, expresses the relation of contribution to sales and can be expressed as under:P/V Ratio = Contribution/Sales