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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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