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Question
when contribution is negative, then how to calculate PV ratio?
 Question Submitted By :: Sanchita.sachdev
I also faced this Question!!     Rank Answer Posted By  
 
  Re: when contribution is negative, then how to calculate PV ratio?
Answer
# 1
lets understand with this exemple

Sales = 10, Variable cost= 3, Fixed cost = 3,

Sales = 10
less Variabled cost = 3
C0ntribution (10-3) = 7
less fixed cost = 3
profit = 4

Contriburion only negetive when Variable cost is more then
sales.
 
Is This Answer Correct ?    6 Yes 1 No
Gulzar Singh
 

 
 
 
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