Q.

When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is -

A. 20%
B. 30%
C. 25%
D. 40%
Answer» C. 25%
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Discussion

Rajendra nath Gorai
2 years ago

Profit increase = 60000-40000= 20000
Profit = 5000
P/v ratio is = 5000/20000= 0.25= 25%
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