Q 7 Sales are RS. 1,00,000, variable cost is Rs.
70,000 and fixed cost is Rs. 15,000. The P/V
ratio will be​

Q 7 Sales are RS. 1,00,000, variable cost is Rs.
70,000 and fixed cost is Rs. 15,000. The P/V
ratio will be​

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2 thoughts on “Q 7 Sales are RS. 1,00,000, variable cost is Rs.<br />70,000 and fixed cost is Rs. 15,000. The P/V<br />ratio will be​”

  1. Given : Sales are RS. 1,00,000

    variable cost is Rs. 70,000

    fixed cost is Rs. 15,000

    To Find : The P/V ratio will be​

    Solution:

    Sales are RS. 1,00,000

    variable cost is Rs. 70,000

    fixed cost is Rs. 15,000

    Total cost = 70000 + 15000 = 85000

    Profit = 100000 – 85000 = Rs 15000

    P/V ratio = profit volume ratio

    Contribution = Sales – variable cost

    = 100000 – 70000

    = 30000

    P/V ratio = Contribution / Sales

    = 30000/100000

    = 3/10

    or

    P/V ratio = ( Fixed cost + Profit ) / Sales

    = (15000 + 15000)/100000

    = = 30000/100000

    = 3/10

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