Question

state the formula for calculating PvRatio​

Answer 1

Answer:

The PV ratio or P/V ratio is arrived by using following formula. P/V ratio =contribution x100/sales (*Contribution means the difference between sale price and variable cost). Here contribution is multiplied by 100 to arrive the percentage.

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Answer 2

FORMULA FOR PVRATIO:

• The Profit Volume (P/V) Ratio is the measurement of the rate of change of profit due to change in volume of sales. It is one of the important ratios for computing profitability as it indicates contribution earned with respect of sales.
• The PV ratio or P/V ratio is arrived by using following formula.
• P/V ratio =contribution x100/sales (*Contribution means the difference between sale price and variable cost).
• Here contribution is multiplied by 100 to arrive the percentage.