Profit Volume Ratio (With Formula and Calculation)

After reading this article you will learn about Profit-Volume Ratio. The Profit/volume ratio, which is also called the 'contribution ratio' or 'marginal ratio', expresses the relation of contribution to sales and can be expressed as under: P/V Ratio = Contribution/Sales Since Contribution = Sales – Variable Cost = Fixed Cost + Profit, P/V ratio can also be expressed as: P/V [...]