question_answer

Why is profit volume ratio used?

I. To compute the variable cost for any volume of sales.

II. To determine breakeven point and the level of output required to earn a desired profit.

III. To decide most profitable sales mix.

Select the correct answer using the codes given below

A)                                  I and II                                    

B)  II and III

C)  I and III                                   

D)  All of these