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[Music] Im professor soffit abode K an and the todays lecture we are going to study regarding the formulas of marginal costing now this marginal costing is having only seven formulas and the entire Sons are based on this seven formulas only so first we are going to start with the pro forma of your marginal cost shape if they have given you the data regarding the number of units produced then your marginal cost sheet two will have the three columns otherwise in the rest all situation it will have only two columns now what is the format of your marginal cost sheet from the cells you have to deduct your variable cost a variable cost is a cost which changes as per the changes and output so you will get the amount of contribution from this contribution you have to deduct the fixed cost then you will get the profit or loss now the first formula is PB ratio P V ratio stands for the profit volume ratio now this PV ratio is having the two formulas the first formula is contribution divided by