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what is the meaning of P/V Ratio?
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Answer Posted / *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
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