Question
What will be the P/V ratio for the firm with the
following sales and profit during last two years:Solution
PVR = [Change in Profit / Change in Sales] * 100 [5000/20,000] * 100 =25% Change in Profit: 20,000-15,000 = 5000 Change in Sales: 160,000 – 140,000 = 20,000
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