How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the contribution margin ratio is 40%? Select one: a. OMR 1,125,000 b. OMR 500,000 c. OMR 1,012,500 O d. OMR 625,000 O e. None of the answers are correct

How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the contribution margin ratio is 40%? Select one: a. OMR 1,125,000 b. OMR 500,000 c. OMR 1,012,500 O d. OMR 625,000 O e. None of the answers are correct

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the
contribution margin ratio is 40%?
Select one:
a. OMR 1,125,000
Ob. OMR 500,000
c. OMR 1,012,500
O d. OMR 625,000
O e. None of the answers are correct
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