Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following Break-even point (in units and amount) PV ratio Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 Total fixed cost 450,000 Selling price per unit 275 Variable cost per unit 125 Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 PV Ratio Profit when sales are 20000 New BE point if selling price is reduced by %25 Question 3: Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.
Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following
- Break-even point (in units and amount)
- PV ratio
- Margin of Safety (as amount and as percentage)
|
|
OMR |
|
Sales (actual) |
800,000 |
|
Total fixed cost |
450,000 |
|
Selling price per unit |
275 |
|
Variable cost per unit |
125 |
Question 2: Muscat Company has the following information.
|
OMR |
|
|
Fixed Cost |
8750 |
|
Break even Sales |
16000 |
- PV Ratio
- Profit when sales are 20000
- New BE point if selling price is reduced by %25
Question 3: Sohar Company’s financial information is given in the table below.
|
Year |
Sales (OMR) |
Fixed Costs |
Variable Costs |
|
2019 |
405000 |
90000 |
225000 |
|
2020 |
450000 |
120000 |
240000 |
Calculate:
- P/V ratio,
- E.P.
- Sales required to earn a profit of OMR 40000.
- Margin of safety at a profit of OMR 50000
- Profit when sales are OMR. 200000.
Question 4:Dhofar Company manufactures two products M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat.
Initial estimates for the sales budgets for the year ending 31 December 2021 which are based on the assessments of the divisional executives are as follows;
Product M1 :Salalah 45,000 units: Raysut 110,000 units and Mirbat: 25,000 units
Product Z1: Salalah 70,000 units: Raysut 82,000 units and Mirbat:0
Sales Prices: M1: 3OMR and Z1= 4 OMR in all areas.
Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalahdivision sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbatarea in the second half of 2021 when sales are expected to be 100,000 units.
Since the estimated sales of the Raysut division represented an unsatisfactory target, it is agreed to increase both the estimates by 15 %.
Prepare a sales budget for the year to 31 December 2021.
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