Business Arithmetic — Entrepreneurship STD 12 Commerce — Question
CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipBusiness Arithmetic3 Marks
Question
Which ratio establishes the relationship between contribution and sale value?
✓
Answer
Profit/ Volume ratio establishes a relationship between the contribution and the sale value.The formula for computing profit/ volume ratio is expressed as: $\frac{\text{Profit}}{\text{Volume ratio}}=\frac{\text{Contribution}}{\text{Sales}}$
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