Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): Profit-Volume (P/V) ratio is considered to be a key indicator of the profitability of a business. Reason (R): An improvement in the P/V ratio leads to higher profit at the same level of sales. Choose the correct option:

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Economics · Cost and Management Accounting

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both (A) and (R) are true and (R) is the correct explanation of (A)

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Answer 3

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