Q5 From the following particulars you are required to calculate (a) P/V ratio and (b) Break-even point () Margin of Safety Actual sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 45000 Also calculate the sales required to maintain the profit OMR 72000.

Q5 From the following particulars you are required to calculate (a) P/V ratio and (b) Break-even point () Margin of Safety Actual sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 45000 Also calculate the sales required to maintain the profit OMR 72000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Qs Let the selling Price of a product is 200$ and the variable cost is 120$ and the Fixed Cost is…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: /v ratio, variable cost and, profit Sales 80000 Fixed expenses 15000 Break even point 50000

A: P/v ratio is the ratio which inducates the chnage in profit due to chnage in sales volume. Therefore…

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Actual sales = OMR 490000 Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable…

Q: Please answer quickly X product; total sales quantity is 25, unit sales price is 1600 TL, unit…

A: sales quantity is 25 unit sales price is 1600 TL unit variable expense is 1000 TL Total fixed…

Q: 4. Total fixed cost OMR 24000 Selling price OMR 25 Variable cost OMR 20 Calculate: a. Contribution…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $154560.…

A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…

Q: Assume that your senior manager provided you the following data to find out the breakeven point in…

A: Total variable cost=Variable cost per unit×Production=OMR 20 ×30,000=OMR 600,000

Q: If Actual sales are OMR 480000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: SOLUTION CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT - VARIABLE PRICE PER UNIT . SALES…

Q: If Actual sales are OMR Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable…

A: The margin of safety when added to the breakeven point gives the total sales.

Q: If Actual sales are OMR 470000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Margin of safety means sales revenue over and above breakeven sales revenue. Breakeven sales revenue…

Q: 3-29 CVP analysis, margin of safety. Suppose Fixed costs are $660,000. 1. Compute the contribution…

A: Hi student Since there are multiple questions,we will answer only 3-29 question. This question has…

Q: ● Use the algebraic approach. If the Income Statement is: ● 2. Sales (P50 x 10,000 units) Less:…

A: Variable costs are costs which changes with change in activity level. Fixed costs do not change with…

Q: If the Sales Cost ( 350000)$ , Sales ( 990000)$ , Ind. Marketing ( f. ) ( 120000)$ Ind. Exp. ( f.) (…

A: The net profit os calculated as difference between sales and costs.

Q: From the following particulars you are required to calculate (a) P I V ratio and (b) Break-even…

Q: Total fixed cost OMR 12000 / Selling price OMR 12 / Variable cost OMR 9 Calculate: a. Contribution…

A: Introduction Break even point is the sales level at which the firm occurs with no profit and no…

Q: Given the following information. answer the questions:• The ratio of variable cost per unit divided…

A: (a) Draw the cost volume profit diagram: Units Sales ($1) Variabe costs ($0.25) Fixed costs…

Q: If, Total Fixed cost OMR 40000, Selling price per unit OMR 30, and Variable cost per unit OMR 12,…

A: The differentiation between anticipated profit margins and break-even point would be known as the…

Q: Sales Rs. 100000, variable cost Rs. 50000 and net profit ratio is 10% on sales, find out fixed…

A: Total Cost = Total Variable cost + Fixed cost

Q: 15-Assume that your senior manager provided you the following data to find out the breakeven point…

A: Introduction: Break even point in sales units: The level where there is no profit nor loss to the…

Q: Sales are 440000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost a.…

A: Sales = 440000 OMR Variable cost = 110000 OMR Profit = 10000 OMR

Q: 1. Briefly explain the impact of each of the following scenarios on the break-even point and the…

A: 1. BREAK EVEN POINT : = FIXED COST / CONTRIBUTION MARGIN PER UNIT 2. MARGIN OF SAFETY : =…

Q: The following data are available for X Corp: Margin of safety 300; MS ratio 20%; Profit of 100 and…

A: Margin of safety: Margin of safety is the point after which profit will be happen in multiple of…

Q: Sales Price = P200 Variable Cost Ratio = 40% Total Contribution Margin = P3,600,000 Net profit ratio…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15, contribution margin (CM) Omr 30…

A: Margin of safety(in value) = Profit/PE ratio

Q: Q7 b.Calculate the effect on profit of a proposed change in 'Sales Mix' from the following data and…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable cost per unit = OMR 35 Actual…

Q: Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given…

A: Margin of safety can termed as an difference between the sales of an product and break-even sales.

Q: Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 2. You are given the following information: Selling price per unit Variable cost OMR 20 OMR 12 Total…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of…

A: The Numerical has covered the concept of Margin Of Safty. The margin of Safty is that the difference…

Q: A)

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Tutorial Q. 5 Assuming that the cost structure and selling prices remain the same in Periods I and…

A: Variable costs and fixed costs are two types of costs that are incurred in the business. Variable…

Q: Question 3. Based on the attached picture Calculate the following Break-even value using the…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: Salalah Company has the following information: Total Fixed cost OMR 20000 Selling price per unit…

A: Solution:- Calculation of the amount of sales if it is desired to earn a profit of OMR 5000 as…

Q: If Actual sales are OMR 600000, Total Fixed costs OMR 150000, Selling price per unit OMR 50, and…

A: Margin of safety sales means sales revenue over and above breakeven sales revenue. Margin of Safety…

Q: 5. Determine the missing values: (Show your workings clearly) Unit Selling Unit Variable…

A: Contribution margin can be defined as the difference between sales revenue and variable cost. It is…

Q: Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even…

A: P/V or Profit Volume Ratio is calculated as Contribution / Sales Here, Contribution = Sales -…

Q: 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine…

A: Formula used: Break-even sales (units) = Fixed cost/ Contribution per unit Break-even sales…

Q: If selling price $40 per unit Variable cost $25 per unit…

A: Break even point = fixed cost / contribution per unit Sales = fixed + desired profit / contribution…

Q: Total Fixed cost OMR 25000, Selling Price per unit OMR 20, and Variable cost per unit OMR 12, What…

A: Sales quantity(in units) can be calculated by using this equation Sales units =Fixed cost+Desired…

Q: Question 4: Compute the EOQ given the following information. The annual consumption is 6000 units,…

A: EOQ= 2×A×OH Where, A is Annual Demand O is Ordering Cost H is Holding Cost Annual Total Cost= (AQ×O)…

Q: selling price $300 per unit Variable cost $250 per unit Fixed…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: using the price p=20 - .05x, use the Revenue function to find the marginal Revenue function R'(x),…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Calculate the information below and use income statement A) PV ratio B)profit when sales are…

A: At break even point , Contribution margin - fixed expenses = 0 Contribution margin - 4000 = 0…

Q: Assume in each case that the selling expenses are $10 per unit and that the normal profit is $6 per…

A: The question is based on the concept of Business Accounting.

Q: Q1) One of the industrial investors needed an analysis that would lead him to a break-even level…

Q: Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: Calculate the information below A) PV ratio B)profit when sales are 20000 C)New BE point if…

A: SOLUTION- BREAK EVEN POINT = IT IS A POINT WHERE TOTAL COST AND TOTAL REVENUE OF THE COMPANY WILL…

Q: Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40…

A: Margin of Safety is the difference between the current sales and the breakeven sales.

Question

100%

Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even point
Le) Margin of Safety
Actual sales OMR. 200000
Variable cost OMR. 120000
Fixed cost OMR. 45000
Also calculate the sales required to maintain the profit OMR 72000.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

From the following particulars you are required to calculate (a) P I V ratio and (b) Break-even point ( c) Margin of Safety Actual sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 45000 Also calculate the sales required to maintain the profit OMR 72000.
How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
Q.3.5 Complete the following table by filling in the missing amounts: (6) Mark-up on Cost Price Profit Selling Price Cost (excluding VAT) (excluding VAT) (excluding VAT) 25% 1 000 100% 6 000 1 500 2 500
If, Total Fixed cost OMR 32000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the Margin of safety and profit if actual sales are OMR 85000? Select one: O a. Margin of Safety OMR 10000, Profit OMR 4000 O b. Margin of Safety OMR 26667, Profit OMR 16000 O c. None of the options O d. Margin of Safety OMR 5000, Profit OMR 2000
Assume in each case that the selling expenses are $9 per unit and that the normal profit is $6 per unit. Calculate the limits for each case. Then enter the amount that should be used for lower of cost or market. Selling Price Upper Limit Replacement Cost Lower Limit Cost LCM (a) $63 $ $44 $ $53 $ (b) 52 35 39 (c) 59 44 45 (d) 54 38 36
If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Soloct
s, and improvements, choose Check for Updates. 4. Total fixed cost OMR 24000 Selling price OMR 25 Variable cost OMR 20 Calculate: a. Contribution per Unit b. P/V Ratio c. Break-even point(BEP) in units and Amounts (OMR) d. What will be the amount of sales if it is desired to earn a profit of (a) OMR 8000; (b) OMR 30000? e. Margin of safety and profit if actual sales is OMR 150000
Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00
Calculate total revenue and fill in the table below. Price Quantity Total Revenue S50 60 $40 06 $35 110 S30 140 $25 190
If, Total Fixed cost OMR 32000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the Margin of safety and profit if actual sales are OMR 85000? Select one: O a. None of the options O b. Margin of Safety OMR 5000, Profit OMR 2000 c. Margin of Safety OMR 10000, Profit OMR 4000 O d. Margin of Safety OMR 26667, Profit OMR 16000
Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
the Sales Cost ( 390000)$ , Sales ( 990000)$ , Ind. Marketing ( f. ) ( 120000)$ Ind. Exp. ( f.) ( 150000)$. Ad. Cost ( 220000)$. Net profit ( using variable Cost ) ?