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The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit.
Profit = Sales - Variable Cost - Fixed Cost.
Thus Contribution is:
Profit + Fixed Cost = Sales - Variable Cost.
Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
What else can I help you with?
What is pv ratio?
The PV ratio, or contribution margin ratio, is the proportion of a product's revenue that contributes towards covering fixed costs and generating profit. It is calculated by dividing the contribution margin per unit by the selling price per unit. A higher PV ratio indicates that a larger portion of each sale contributes towards covering fixed costs and generating profit.
What is the ratio of mass and volume?
The ratio of mass to volume is called density.
Is a high P E ratio better than a low P E ratio?
No. A higher P E ratio can result in much better results than a lower P E ratio, but it is a lot riskier. Meaning a higher risk of loss for the higher P E ratio.
What is the voltage across a 1k ohm resistor when it dissipates 0.625w?
dude... using the relation power is the ratio of square of voltage to the resistance P=V^2/R on substitutiing , we get v=(0.000625)^1/2 = 0.125 V
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If: p = mv Then: v = p/m
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in the equation p=m x v, the p represents
What are the most basic Electrical Engineering Short circuit current calculation formulaes?
P=VI V=P/I I=P/V V=I*R I=V/R R=V/I P=1.743*V*I*PF for 3 phase full load
What does the you stand for P equals V x I?
There is no "you" in P = V x I
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Given one ratio, p/q, you will obtain an equivalent ratio if you multiply p and q by any non-zero integer.
If p equals m divided v then what does v equal?
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When was Rajagopal P. V. born?
Rajagopal P. V. was born in 1948.
When was V. P. Oliver born?
V. P. Oliver was born in 1985.
