Question

Sales = Rs.100000, variable cost = Rs.50000, Fixed cost = Rs. 30000. calculated P V Ratio

Answer 1

Explanation:

Given :

Sales = Rs.100000, variable cost = Rs.50000, Fixed cost = Rs. 30000.

• P/V ratio :

P/V ratio = Contribution/ Sales × 100

=> 100000 - 50000 = 50000

P/V ratio = Contribution/ Sales × 100

= 50000/100000 × 100

= 50%

Therefore, P/V ratio = 50%