Mathematics · Marginal Costing
A reduction in variable cost per unit, keeping selling price constant, will lead to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Decrease in Profit-Volume (PV) ratio
- 2Improvement (Increase) in Profit-Volume (PV) ratio✓
- 3No change in Profit-Volume (PV) ratio
- 4Decrease in Contribution per unit
Correct answer
Improvement (Increase) in Profit-Volume (PV) ratio
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