Omega Medical Supplies Pte Ltd (OMS) is a small but growing manufacturer of medical equipment. Due to its small set-up, the company does not have a sales force of its own, but relies entirely on independent sales agents to market its products. The independent sales agents are paid a commission of 15% of sales. This is reflected in the budget for the new financial year ending 31 December 2022, as follows: (S'000) Sales Cost of goods sold 16,000 (000.$) Variable 7,200 Fixed Gross profit Selling, general and administrative expenses Agents' commissions Fixed advertising expenses Fixed general and administrative expenses Profit before interest and taxes 2.340 9,540 6,460 2,400 120 1,800 4,320 2,140 540 Fixed interest expense Profit before taxes Тах ехpense Profit after tax 1,600 272 1.328

Omega Medical Supplies Pte Ltd (OMS) is a small but growing manufacturer of medical equipment. Due to its small set-up, the company does not have a sales force of its own, but relies entirely on independent sales agents to market its products. The independent sales agents are paid a commission of 15% of sales. This is reflected in the budget for the new financial year ending 31 December 2022, as follows: (S'000) Sales Cost of goods sold 16,000 (000.$) Variable 7,200 Fixed Gross profit Selling, general and administrative expenses Agents' commissions Fixed advertising expenses Fixed general and administrative expenses Profit before interest and taxes 2.340 9,540 6,460 2,400 120 1,800 4,320 2,140 540 Fixed interest expense Profit before taxes Тах ехpense Profit after tax 1,600 272 1.328

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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