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Marginal costing

What is the logic behind this formula?

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

30-Sep-20 23:21

11

Answers (2)

Best Answer

PV Ratio is contribution divided by sales. When sale increase, fixed costs do not increase. So all increase in profit is because of contribution only.


Suraj Lakhotia

Suraj Lakhotia

Admin

01-Oct-20 09:06

Thanks, sir


Swathi Krishna

Swathi Krishna

CA Inter

7K+

01-Oct-20 19:20

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