Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit analysis.
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Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit analysis.
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- QUESTION ONE Explain what is meant by the term ‘relevant range’. and Define the term ‘contribution margin’. Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit analysis. Describe and distinguish between the three different approaches to presenting cost–volume–profit relationships in graphical format.What is the difference between Cost-Volume Profit graph and Profit-Volume graph?