what is the meaning of P/V Ratio?
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Answer / gaurav
As per my view PV Ratio based on sales & Profit Ratio which
varies from no of units sale. So PV ratio or profit volume
ratio can drives from the following formulas :-
1.Contribution/sales x 100
2.(Fixed Cost + Profit)/Sales x 100
3.(Sales - Variable Cost) x 100
4.Change in profit/Change in sales
| Is This Answer Correct ? | 12 Yes | 3 No |
Answer / geeta jain
This ratio shows the information for analysing the profit
impact because of changes in sales volume, change in cost &
price of firm.
| Is This Answer Correct ? | 45 Yes | 37 No |
Answer / arun kumar velu
Its is a measures, it express the relationship between
profit earned and volume of production to earn a particular
profit.what is the profit volume, if output produced and
vice verse.
P/V RATIO= CONTRIBUTION /SALES *100 OR
P/V RATIO= SALES-VARIABLE COST / SALES *100 OR
P\V RATIO= FIXED COST+PROFIT / SALES *100
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / kavish mathur
P/V ratio is the ratio between sales and profit. it show us
that when i sale x qty. at y rate then profit should z%.
simply we can say that sales & profit related between.
P/V Ratio :
= sales - variable cost/sales * 100
= fixed cost + profit/cost (per unit)*100
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / veena m.s.
P stands for Profit & V stands for Volume in PV Ratio.
SP-VC
PV Ratio= -------
SP
where SP=Selling Price
VC=Variable Cost
and
SP-VC=Contribution
Thus,
Contribution
PV Ratio= --------------
Selling Price
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / *pradeep
P/v ratio means it the relation between sales & contribution.
Or it is known as profit volume ratio.
P/v ratio = contribution/sales x 100
contribution = sales - variable cost (c=s-v)
or,fixed cost + profit = sales - variable cost.
so,sales = fixed cost+profit+variable cost.
or,p.v ratio = (sales - variable cost) / sales x 100
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / veena
SP-VC
PV Ratio= -------
SP
where SP=Selling Price
VC=Variable Cost
and
SP-VC=Contribution
Thus,
Contribution
PV Ratio= --------------
Selling Price
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / litu
simply p/v ratio is the relations between
contribution(sale-variable cost) and sale i.e
p/v ratio=c/s*100
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / neetesh kumar rai
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 profitability. 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 ? | 1 Yes | 0 No |
Answer / dooplesh kumar
p/v ratio= change of profit / chang of sale * 100
= profit /MOS *100
=c/s*100
| Is This Answer Correct ? | 1 Yes | 0 No |
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