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This query is : Resolved
C.A. Dhara
(Querist)
22 October 2010
Can any one explain me the relationship beetween contribution, P/V ratio and margin of safety.?
How they coneect to other?
I am verymuch confused beetween these three? how to apply?
Please if any one had idea pls explain .
How they coneect to other?
I am verymuch confused beetween these three? how to apply?
Please if any one had idea pls explain .
CMA Ramesh Krishnan
(Expert)
22 October 2010
P/V ratio nothing but the percentage of contribution on sales, contribution is the sum of profit+ fixed cost, margin of safety is the value of sale in excess of sales which recovere the the fixed cost fully. everything is different calculation
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