Profit Volume Ratio P V ratio can be calculated as ...........

Finance (Phase -I & II) Analysis of Financial Statements

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Profit / Volume Ratio (P/V ratio) can be calculated as:

Contribution/Sales x 100

Profit /Sales x 100

Profit/Total Cost x 100

None of the above

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Explanation:

P/V ratio establishes the relationship between contribution and sales. It shows the amount of contribution per rupee of sales. It is also called contribution to sales ratio. It is measurement of the rate of change of profit due to change in volume of sales. Profit / Volume Ratio (P/V ratio) can be calculated as: Contribution/Sales x 100