Profit/Volume Ratio
lmr72
Registered Posts: 10 Regular contributor ⭐ ? ⭐
Please could someone help me I'm have a blamk moment!!
How do you calculate profit/volume ratio?
I am trying to revise Unit 6 but I'm really struggling
How do you calculate profit/volume ratio?
I am trying to revise Unit 6 but I'm really struggling
0
Comments

There are 2 ways
 Contribution per unit divided by Price per unit
 Total contribution divided by total revenue
Typically the business will have lots of products and services at different prices so break even in terms of units sold would not be meaningful
Then you'd calculate the PV ratio (using the second way) and put this into the formula
...................Total fixed cost
.........................PV ratio
To give the breakeven valueof sales0 
Thanks0
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