#Commerce

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what is p/v ratio in commerce?

Sakshi Singh Aneja 23rd Oct, 2020

Answer (1)

Ankur Dubey Student Expert 23rd Oct, 2020

Hello

Pv ration is profit volumn ratio indicating relationships between contribution and sales and is usually expressed in percentage.

The ratio shows the amount of contributions per rupee of sale. Since, in the short term ,fixed cost does not change ,the profit volumn ration also measures the rate of change of profit due to the change in volumn of sales.

Good Luck.

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