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