PS Limited is facing downfall in its demand. Marketing team has suggested to reduce the selling price by 5% to compete in the market. Variable cost…
CA Intermediate · Cost and Management Accounting · PYQS · September 2024
PS Limited is facing downfall in its demand. Marketing team has suggested to reduce the selling price by 5% to compete in the market. Variable cost is 76% of the current selling price. You are required to find out the P/V Ratio after reducing the price by 5%
Suggested Answer and Working Notes:
Correct Answer: Option (A)
20%
Topics: Marginal Costing
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