Composite P/V ratio for a mix of Product A (P/V 50%, share 40%) and B (P/V 30%, share 60%) equals:
A36%
B40%
C38%
D42%
Answer & Solution
Correct answer: C. 38%
1. Composite P/V ratio = Σ (P/V × sales share).
2. Substitute: (0.50 × 0.40) + (0.30 × 0.60).
3. = 0.20 + 0.18.
4. = 0.38 or 38%.
_Source: ICAI BoS Inter Paper 3, Ch 14 "Marginal Costing", §14.8 Illus 11_
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