Calculation of p/v ratio

If a business has an overall negative contribution margin, the business often needs to think creatively to resolve the issue. In many cases, the company will find that only some of its products and services result in the negative contribution margin. The business should specifically examine those products and the pricing for those products that cause the negative contribution margin. In the same way, the business should look at individual customers in terms of what they buy, how much they buy and what prices they pay to Identify individual sources that result in the negative overall contribution margin for the company.