6. The sales and profit for two years are as below: Sales Profit Sales Profit 2002 150000 20000 2003 170000 25000 Calculate: (a) P/V ratio, (b) B.E.P. (e) Sales required to earn a profit of OMR 40000. (d) Margin of safely at a profit of OMR 125000 (e) Profit when sales are OMR 180000. (G) Variable costs of the two years

6. The sales and profit for two years are as below: Sales Profit Sales Profit 2002 150000 20000 2003 170000 25000 Calculate: (a) P/V ratio, (b) B.E.P. (e) Sales required to earn a profit of OMR 40000. (d) Margin of safely at a profit of OMR 125000 (e) Profit when sales are OMR 180000. (G) Variable costs of the two years

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

date with security updates, fixes, and improvel
6. The sales and profit for two years are as below: Sales Profit
Sales
Profit
2002
150000
20000
2003
170000
25000
Calculate:
(a) P/V ratio, (b) B.E.P. (e) Sales required to earn a profit of OMR 40000. (d) Margin of safely
at a profit of OMR 125000 (e) Profit when sales are OMR 180000. (G) Variable costs of the
two years
770 words E
Englios ited States

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Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) Total fixed cost Selling price per unit Variable cost per unit 800,000 450,000 275 125
2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 C 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545
Calculate the Contribution Margin Ratio: Sales 2,000,000 Rent 500,000. Depreciation 200,000. Variable COGS 60,000 Fixed COGS 35,000.
For the coming year, Cleves Company anticipates a unit selling price of $80, a unit variable cost of $40, and fixed costs of $248,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $96,000. units
A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
Subject: accounting