If a company has a P/V ratio of 40%, by what percentage sales must be increased to offset 10% reduction in selling price ?

CS Executive · Corporate and Management Accounting · PYQS · December 2022
If a company has a P/V ratio of 40%, by what percentage sales must be increased to offset 10% reduction in selling price ?
(A) 4%
(B) 30%
(C) 33.33%
(D) 25%

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Management Accounting

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