Question

v). State the formula for calculating PV Ratio.​

Answer 1

Answer:

• The Profit Volume (P/V) Ratio is the measurement of the rate of change of profit due to change in volume 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).

Answer 2

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.