pv ratios
jkc
Registered Posts: 166 Dedicated contributor 🦉
have i got the correct formula please?
Pv ratio = contribution/selling price
then use this to find Break even sales revenue Fixed cost/Pv ratio
I have been using Break even in units multiplied by Unit price to find break even sales revenue.
Do i need to know the pv formula if I can find the BE sales rev bythis method. as im am having reall trouble memorising pv.
thanks.
Pv ratio = contribution/selling price
then use this to find Break even sales revenue Fixed cost/Pv ratio
I have been using Break even in units multiplied by Unit price to find break even sales revenue.
Do i need to know the pv formula if I can find the BE sales rev bythis method. as im am having reall trouble memorising pv.
thanks.
0
Comments
-
2 formulae
contribution per unit/ price
or
total conribution/total revenue
the second could be used by a firm with several products differently priced
in this case you could not have a break even number of units, only break even sales revenue
It hasn't been tested since it was added to the syllabus - in my humble opinion it is overdue, but it might be something the examiner does not intend to test.Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
thanks sandy.0
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