[amp_mcq option1=”Increasing selling price” option2=”Altering sales mixture” option3=”Reducing variable cost” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is D. All of the above.<\/p>\n
The profit-volume ratio is a measure of a company’s profitability. It is calculated by dividing the company’s operating profit by its sales revenue. A higher profit-volume ratio indicates that the company is more profitable.<\/p>\n
There are a number of ways to improve a company’s profit-volume ratio. One way is to increase the selling price of its products or services. This will increase the company’s revenue and, if the variable costs do not increase proportionately, will also increase the company’s profit.<\/p>\n
Another way to improve a company’s profit-volume ratio is to alter its sales mix. This means selling more of the products or services that have a higher profit margin and less of the products or services that have a lower profit margin.<\/p>\n
Finally, a company can also improve its profit-volume ratio by reducing its variable costs. This can be done by negotiating better prices with suppliers, finding cheaper ways to produce its products or services, or by reducing the amount of waste it produces.<\/p>\n
All of these methods can help to improve a company’s profit-volume ratio and, ultimately, its profitability.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Increasing selling price” option2=”Altering sales mixture” option3=”Reducing variable cost” option4=”All of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-56190","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n