P/V Ratio 50%; Variable cost of the produce Rs. 25; Selling price is .a.Rs. 30 .b.Rs. 40.c.Rs. 55.d.Rs. 50 .
Question
Solution 1
The P/V ratio, also known as the profit-volume ratio, is a measure of the profitability of a product. It is calculated as the difference between the selling price and the variable cost, divided by the selling price, expressed as a percentage.
Given: P/V Ratio = 50% Variable cost = Rs. 25
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