Which of the following measures helps to increase the P/V Ratio ?
A)increasing the selling price per unit
B)reducing the variable or marginal cost
C)changing the sales mixture
D)all of these

Question

Quizplus · Accepted Answer

The P/V Ratio (Profit/Volume Ratio) increases by increasing the selling price per unit, reducing the variable or marginal cost, and optimizing the sales mix to favor more profitable items. All these measures improve the contribution margin per unit or overall, thus enhancing the P/V Ratio.

Which of the Following Measures Helps to Increase the P/V