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P V Ratio

The document discusses profit-volume ratio, which expresses the relationship between contribution and sales. It indicates the relative profitability of different products, processes, and departments. The formula for profit-volume ratio is: P/V ratio = (Sales - Variable Costs) / Sales x 100, which shows contribution/sales x 100 or change in profit/loss divided by change in sales.

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Srikanth Nuka
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173 views1 page

P V Ratio

The document discusses profit-volume ratio, which expresses the relationship between contribution and sales. It indicates the relative profitability of different products, processes, and departments. The formula for profit-volume ratio is: P/V ratio = (Sales - Variable Costs) / Sales x 100, which shows contribution/sales x 100 or change in profit/loss divided by change in sales.

Uploaded by

Srikanth Nuka
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is Profit/Volume Ratio?

Profit-Volume Ratio expresses the relationship between


contribution and
sales. It indicates the relative profitability of diff products,
processes and
departments.
Formulae:
P/V ratio = S – V/ S X 100
= Cont / Sales X 100
= Change in profit or loss / Change in sales

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