Question

when salea increase form Rs 40,000 to rs 50,000 and profit increased by rs 5000, the pv ratio is ___?​

Answer 1

SOLUTION

TO FILL IN THE BLANK

When sales increase form Rs 40,000 to Rs 50,000 and profit increased by Rs 5000, the PV ratio is _____

EVALUATION

Here it is given that sales increase form Rs 40,000 to Rs 50,000 and profit increased by Rs 5000

So

Increase in sales

= Rs ( 50000 - 40000 )

= Rs 10000

Increase in Profit = Rs 5000

Hence the required PV ratio

$\displaystyle \sf{ = \frac{Increase \: in \: profit }{Increase \: in \: sales} }$

$\displaystyle \sf{ = \frac{5000}{10000} }$

$\sf{ = 0.5}$

FINAL ANSWER

When sales increase form Rs 40,000 to Rs 50,000 and profit increased by Rs 5000, the PV ratio is 0.5

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Answer 2

Answer:

Explanation:

Given:

Sales increase form Rs 40,000 to rs 50,000

Profit increased by Rs 5000,

pv ratio is ___?

Solution :

$PV \: Ratio \: = \: \frac{changes \: in \: prfit}{changes \: in \: sales} \: \times \: 100$

Sales = 50,000 - 40,000

= 10,000

Profit increased by = Rs 5000

P/V Ratio = $\frac{5000}{10000} \ \times 100$

= 50%

P/V Ratio = 50%

Hence, the P/V Ratio is 50%