Q285
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.
0.2
B.
0.3
C.
0.25
AnswerD.
40%
Answer: Option C
Solution
Answer: Option C
Solution:
Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000 PV Ratio = Increase in Profit / Increase in sales
= 5000 / 20000 = 0.25