what is the meaning of P/V Ratio?
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Answer / vishal bargoti
meaning of p/v is pain for vishal...i am struggling with
accounts...lol :(
Can anybody help me wth MBA accounts??? reach me on
anujgdelhi@gmail.com
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / 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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Answer / balureddy
p/v ratio is also the difference between changes in profit
and changes in sales
thus
changes profit/changes in sales
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Answer / faiza khalid
Profit/ volume Ratio:
It shows the relationship in the contribution and sales. It is expressed as percentage volume. Improvement in the ratio means improvement in the profitabiltiy of the business.
This ratio can be calculated through following formula.....
1) Contribution/Sales*100(C/S*100)
2) (Sales-VC)/Sales *100(S-V)/S*100)
3) P/V Ratio= (Change in profit/Change in sales)*100
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Answer / satya
P/VRatio showes the relationship beetween sales and
contribution .........
P/V Ratio :sales/contribution *100
:sales/fixedcost+profit *100
:sales/sales-variable cost *100
| Is This Answer Correct ? | 55 Yes | 129 No |
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