Multiple Choice Questions on When the sales increase from Rs 40 000 to Rs 60 000 and profit increases by Rs 5 000 the P V ratio i........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

When the sales increase from Rs 40 000 to Rs 60 000 and profit increases by Rs 5 000 the P V ratio i...........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V

    ratio is —

    20%

    Incorrect Answer

    30%

    Incorrect Answer

    25%

    Correct Answer

    40%.

    Incorrect Answer
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    Explanation:

    The answer will be 25 percent
    Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000
    PV Ratio = Increase in Profit / Increase in sales
    = 5000 / 20000 = 0.25

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