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    Question

    What will be the P/V ratio for the firm with the

    following sales and profit during last two years:
    A 20% Correct Answer Incorrect Answer
    B 25% Correct Answer Incorrect Answer
    C 30% Correct Answer Incorrect Answer
    D 35% Correct Answer Incorrect Answer
    E 40% Correct Answer Incorrect Answer

    Solution

    PVR = [Change in Profit  / Change in Sales] * 100 [5000/20,000] * 100 =25% Change in Profit: 20,000-15,000 = 5000 Change in Sales: 160,000 – 140,000 = 20,000

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