From the following data calculate (i) P/V Ratio (ii) Profit
when sales are Rs.20,000 and (iii) the new Break-Even
Point, if the selling price is reduced by 20%
Fixed expenses Rs. 4,000
Break-Even-Pont Rs. 10,000
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Answer Posted / h. vabeizawzi
PVR=SALES-VARIABLE COST/SALES*100
=20000-12000/20000*100
=8000/20000*100
=40%
OR
PVR=FC+PROFIT/SALES*100
=4000+4000/20000*100
=8000/20000*100
=40%
OR
PVR=CONTRIBUTION/SALES*100
=8000/20000*100=40%
+----------------------------------------------------------+
| Is This Answer Correct ? | 9 Yes | 6 No |
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