what is the meaning of P/V Ratio?
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Answer Posted / b.thirumal
The sales and marginal costs vary directly with the number
of units sold. So, the difference between sales
and marginal cost, i.e. contribution, will bear a relation
to sales and the ratio of contribution to sales remains
constant at all levels. This is profit volume or P/V ratio.
Thus,
p/v ratio = contribution /sales x100
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