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    • Question

      If the P/V Ratio of a product is 40% and the selling

      price is ₹100, what is the variable cost per unit? 
      A ₹40 Correct Answer Incorrect Answer
      B ₹140 Correct Answer Incorrect Answer
      C ₹50 Correct Answer Incorrect Answer
      D ₹60 Correct Answer Incorrect Answer
      E ₹20 Correct Answer Incorrect Answer

      Solution

      P/V Ratio + Variable Cost Ratio = 100%. If P/V is 40%, the Variable Cost Ratio will be 60%.  $60% of 100 = ₹60.

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