A Toy store sells remote control car. The average selling price is SAR 15 and tin average variable cost (cost price) is SAR 9. Thus, every time the store sells a toy car it has SAR o remaining after it pays the manufacturer. This SAR 6 is referred to as the unit contribution. The fixed costs of operating the store (its operating expenses) are SAR 100,000 per year. a. If the total sales units are 20,000. Prepare the Income statement in contribution margin format. b. The fixed costs of operating the store (its operating expenses) are SAR100, 000 per year. Find Break-even in units? c. If the owner desired a profit of SAR 25,000, what will be break-even point in SAR?

A Toy store sells remote control car. The average selling price is SAR 15 and tin average variable cost (cost price) is SAR 9. Thus, every time the store sells a toy car it has SAR o remaining after it pays the manufacturer. This SAR 6 is referred to as the unit contribution. The fixed costs of operating the store (its operating expenses) are SAR 100,000 per year. a. If the total sales units are 20,000. Prepare the Income statement in contribution margin format. b. The fixed costs of operating the store (its operating expenses) are SAR100, 000 per year. Find Break-even in units? c. If the owner desired a profit of SAR 25,000, what will be break-even point in SAR?

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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