Sales Rs. 25,000; Variable cost Rs. 15,000; Fixed cost Rs. 4,000; P/V ratio is_________________
A. 80%
B. 15%
C. 40%
D. 30%
Answer: Option C
Solution (By Examveda Team)
P/V ratio =contribution x 100/sales (Contribution means the difference between sale price and variable cost).Contribution = 25000 - 15000 = 10000
P/V ratio =10000 x 100/25000 = 40%
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