Question: what is pv ratio formula?
Answer: 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). ... For example, the sale price of a cup is Rs. 80, its variable cost is Rs. 60, then PV ratio is (80-60)× 100/80=20×100÷80=25%. .