Question

When sales rs 80000 variable cost rs 50000 the p/v ratio is ____ percent

Answer 1

Answer:

When sales ₹80,000 variable cost ₹50,000 the p/v ratio is rate percent

Answer 2

Given:

Sales=Rs.80,000

Variable cost=Rs.50,000

To find:

The P/V ratio

Solution:

The P/V ratio is 37.5%.

We can find the ratio by following the given steps-

We know that the ratio can be calculated by dividing the contribution by sales and multiplying it with 100.

So, the P/V ratio=(Contribution/Sales)×100

The amount of contribution is the difference between the sale and the variable cost.

Contribution=Sales-Variable cost

On putting the values,

Contribution=80,000-50,000

=Rs.30,000

Now, we will calculate the P/V ratio by putting the values in the formula,

P/V ratio=30,000×100/80,000

=300/8

=37.5%

Therefore, the P/V ratio is 37.5%.