Answer Posted / kasim
The Profit Volume (PV) Ratio is the ratio of Contribution
over Sales. It measures the Profitability of the firm and is
one of the important ratios for computing profitabilty. The
Contribution is the extra amount of sales over variable cost.
Contribution is also Fixed cost plus profit.
Profit = Sales - Variable Cost - Fixed Cost.
Thus Contribution is:
Profit + Fixed Cost = Sales - Variable Cost.
Therefore PV Ratio = (Contribution/Sales)X100. (This as a
percentage of sales)
Is This Answer Correct ? | 24 Yes | 0 No |
Post New Answer View All Answers
What is re-financing in Letter of Credit settlement
Suppose the production is more and sales less then what will happen
company accounts introduction?
Expand CCIT?
what are the certificates needed at the time of SBI clerical interview?
PO Amount is 100000 Jv is Purpose A/c To Party A/c First payment is 10000 TDs is 1000 What is the Payment enter in tally
Q13. Journalise the following transactions: Proprietor withdrew for private use Rs.4000/- from bank and 6000/- cash. Goods Costing Rs.5000 was burnt by fire. Purchase Machinery for cash Rs.150000/- and paid Rs.2000/- on its Installation. Charge 5% Depreciation on building costing Rs.200000/- and 8% Depreciation on Furniture costing Rs.5000/-. Prepaid Salary Rs2000/- Kapil who owed us Rs20000/- become insolvent and nothing is received from his estate.
You are working in a Company but due to certain reasons you were not able to complete the work given to you on time, so to write a Letter of Apology to your Senior regarding it.
can u let me know how the bankers calculate interest on O.D.account
Can you explain about the distinction of Book-Keeping and Accounting
what is the meaning of call in arear
Why are there 30 blue-chip companies only considered in bombay stock exchange.And why those thirty only effect the sensex
what is the main difference between nse & bse operations
difference between contra entry and double entry?
What is TDS entry for a Firm? as previous years TDS is shown as opening balance in the books of the firm in current year and i don,t want in C.Y as its claimed in the Computation of Previous Years???? So what is the A/C ing entry