total variable cost is rs.425500 & fixed cost is Rs.144500,pv Ratio is 20% on sales then sales is: a)rs.684000 b)rs.665000 c)rs.712500 d)rs.750000

guys i have problem in marginal costing pls.help

Your Answer

I got the ans that 531875 pv ratio formula I.e contribution÷sales or sales- variable cost ÷sales here sale not given so take as X X-425500/X=20% 0.2X=X-425500 0.8X=425500 X=531875 contribution is 531875-425500=106375 if u cross check the ans i.e 106373÷531875=20%

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  • pv ratio is 20%on sales i.e contribution remaining 80%is variable coSt if 80% is 425500 then 100% is? if cross multiple i.e 100×425500÷80=531875 you will get the same

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