Question: 3. By noting P/V will increase or P/V will decrease or P/V will not change as the case may be, state how the following independent
3. By noting “P/V will increase or P/V will decrease or P/V will not change” as the case may be, state how the following independent situations will affect the P/V ratio:
(i) An increase in the physical sales volume.
(ii) An increase in the fixed cost.
(iii) A decrease in the variable cost per unit.
(iv) A decrease in the contribution margin.
(v) An increase in selling price per unit.
(vi) A decrease in the fixed cost.
(vii) A 10% increase in both selling price and variable cost per unit.
(viii) A 10% increase in the selling price per unit and 10% decrease in the physical sales volume.
(ix) A 50% increase in the variable cost per unit and a 50% decrease in fixed cost.
(x) An increase in the angle of incidence.
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