6/13/2023 0 Comments Profit volume ratioAlternatively, one can also calculate the amount of sales that is required to generate a given level of profit. Also, it facilitates the calculation of profit at a specific sales level. Sales volumes to the right of the breakeven point on the chart indicate profits, while volumes to the left result in losses. As the volume of sales increases, the line rises from left to right in an upward sloping manner so that profits rise as sales increase. In narrow sense it helps in finding breakeven point and in broader sense it helps in profit, cost and sale at different level of output. Profit Volume Ratio Or Cost Volume Profit Analysis Ratio Or Break Even Ratio.One Thought On 4 Concepts Of Profit Volume Ratio.
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