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How do you calculate PV for 2 years?

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How do you calculate PV for 2 years?

The PV ratio or P/V ratio is arrived by using following formula. P/V ratio =contribution x100/sales (*Contribution means the difference between sale price and variable cost). Here contribution is multiplied by 100 to arrive the percentage.

When fixed costs are Rs 4000 and P V ratio is 25% then breakeven point will be?

Given sales = 150000, Fixed costs = 30000, Profit = 40000….

Q. When fixed costs are Rs.4000 and P/v ratio is 25%, then break even point will be …………..
C. 16000
D. 10000
Answer» c. 16000

When profit is rupees 5000 and PV ratio is 20% margin of safety?

Given sales = 100000, Profit = 10000 , variable cost = 70%. The salesrequired to earn a profit of Rs. 40000 is ……………………… Ratio of net profit before interest and tax to sales is ………………….

Q. When profit is Rs.5000 and P/v ratio is 20% , Margin of safety is…………
D. 50000
Answer» b. 25000

How do u calculate sales?

Sales revenue is generated by multiplying the number of a product sold by the sales amount using the formula: Sales Revenue = Units Sold x Sales Price.

How do you calculate desired sales?

Desired Sales Formula

  1. Break Even Sales (Rupees)=Fixed Cost /PV ratio.
  2. Fixed Cost + Desired Level Profit /PV ratio.
  3. Change in Profit*100 /Sales. To identify the change in profit, the profits of the two different periods should be known. Profit= Sales-Total cost.

When the sales Incraease from Rs 40000 to Rs 60000 and profit increases by Rs 5000 the P V ratio is?

9 When the sales incraease from Rs 40,000 to Rs 60,000 and profit increases by Rs. 5,000, the P/V ratio is – 0.2.

What is the formula for calculating fixed cost?

How to Calculate Fixed Cost

  1. Fixed costs = Total production costs — (Variable cost per unit * Number of units produced)
  2. $4,000 total production costs — ($3 * 1,000 tacos) = $1,000 fixed cost.
  3. Average fixed cost = Total fixed cost / Total number of units produced.

How do you calculate fixed cost and variable cost in Excel?

Break-Even Price

  1. Variable Costs Percent per Unit = Total Variable Costs / (Total Variable + Total Fixed Costs)
  2. Total Fixed Costs Per Unit = Total Fixed Costs / Total Number of Units.
  3. Break-Even Price = 1 / ((1 – Total Variable Costs Percent per Unit)*(Total Fixed Costs per Unit))

How do you calculate PV in Excel?

Present value (PV) is the current value of an expected future stream of cash flow. PV can be calculated relatively quickly using excel. The formula for calculating PV in excel is =PV(rate, nper, pmt, [fv], [type]).