SP-VC PV Ratio= ------- SP where SP=Selling Price

what is the meaning of P/V Ratio?

Question Posted / veena

Answer Posted / veena

SP-VC
PV Ratio= -------
SP

where SP=Selling Price
VC=Variable Cost
and

SP-VC=Contribution
Thus,
Contribution
PV Ratio= --------------
Selling Price

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