Your SlideShare is downloading.
×

×

Saving this for later?
Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.

Text the download link to your phone

Standard text messaging rates apply

Like this presentation? Why not share!

- Chapter 18 costing for decision m... by alokranjan1990 1136 views
- Cost-volume-profit analysis and Bre... by Ashraf Saeed 3758 views
- Break Even Analysis by yogesh raghuwanshi 42541 views
- Marginal costing by Nishant Singh 25318 views
- Break-Even Point Analysis by Sheryl Satorre 11697 views
- Break even analysis by Abhilash Kallayil 10711 views

10,145

Published on

No Downloads

Total Views

10,145

On Slideshare

0

From Embeds

0

Number of Embeds

0

Shares

0

Downloads

139

Comments

0

Likes

3

No embeds

No notes for slide

- 1. p/v ratio <br />Submitted to<br />L.Rongmai<br />Asst prof<br />Dba-Sms<br />Submitted by <br />Sujoykumarpaul<br />Roll no -03<br />1<br />
- 2. The profit /volume ratio ,which is also called the contribution ratio or marginal ratio express the relation of contribution to sales and can be expressed as under<br />P/v ratioΒ =ππππ‘ππππ’π‘ππππ ππππ <br />Β <br />March 3, 2011<br />2<br />
- 3. Since<br />Contribution = Sales β variable cost = variable + Profit,<br />P/V ratio can also be expressed as:<br />P/V Ratio=πΊππππΒ βπ½πππππππΒ πππππΊππππ<br />Β <br />March 3, 2011<br />3<br />
- 4. The P/v Ratio ,which establishes the relationship between contribution and sales is of vital importance for studying the profitability of operations of a business .It reveals the effect on profit in the volume .<br />Higher the P/V Ratio, more will be the profit and lower the P/V Ratio lesser will be the profit.<br />March 3, 2011<br />4<br />
- 5. The ratio can be increased by increasing the contribution β¦..<br />Increasing the selling price <br />Reducing the variable or marginal cost<br />Changing the sales mixture and selling more profitable products for which the P/V Ratio is higher.<br />March 3, 2011<br />5<br />
- 6. The concept of P/V Ratio is also useful to calculate the break even point , the profit at a given volume of sales ,the sales volume required to earn a given profit and the volume of sales required to maintain the present profits if the selling price is reduced by a specific percentage.<br />March 3, 2011<br />6<br />
- 7. Thank you<br />March 3, 2011<br />7<br />

Be the first to comment