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    Question

      If Selling Price is 9 per unit, variable cost is 5

    per unit and fixed cost is 100000, calculate PV ratio?
    A 50% Correct Answer Incorrect Answer
    B 40% Correct Answer Incorrect Answer
    C 44.44% Correct Answer Incorrect Answer
    D 55.55% Correct Answer Incorrect Answer
    E 60% Correct Answer Incorrect Answer

    Solution

    PV ratio = Contribution/ Sales = 44.44% Rs. 4 / Rs. 9 * 100 Contribution = Selling Price – Variable cost Rs. 9- Rs. 5 = Rs. 4

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