Contribution - Rs. 40,000; sales - Rs. 2,00,000; What is the P/V ratio?
Question
Contribution - Rs. 40,000; sales - Rs. 2,00,000; What is the P/V ratio?
Solution
To calculate the P/V ratio, we need to divide the contribution by the sales.
Given that the contribution is Rs. 40,000 and the sales are Rs. 2,00,000, we can calculate the P/V ratio as follows:
P/V ratio = (Contribution / Sales) * 100
P/V ratio = (40,000 / 2,00,000) * 100
P/V ratio = 0.2 * 100
P/V ratio = 20%
Therefore, the P/V ratio is 20%.
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