__Profit/Volume Ratio (P/V-Ratio or C/S Ratio):__

__Profit/Volume Ratio (P/V-Ratio or C/S Ratio):__

The Profit/Volume ratio, which is also called the “**Contribution ratio**” or **marginal ratio**, expresses the relation of contribution to sales and be expressed in the following manner –

$$\frac PV\;ratio\;=\;\frac{Contribution}{Sales}\;or\;\frac CS$$

$$or,\;\frac PV\;ratio\;=\;\frac{S-V}S$$

$$or,\;\frac PV\;Ratio\;=\;\frac{\;(F\pm P)}S$$

$$or,\;\frac PV\;Ratio\;=\;\frac{(Change\;in\;Profit\;or\;Contribution)}{(Change\;in\;Sales)}$$