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Marginal costing

Costing

What is the logic behind this formula?

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Swathi Krishna

Swathi Krishna

CA Final

★ 8K+

30-Sep-20 23:21

343

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.

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

01-Oct-20 09:06

Thanks, sir

Thread Starter

Swathi Krishna

Swathi Krishna

CA Final

★ 8K+

01-Oct-20 19:20

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