Cost Schedules Variable costs Direct labor per unit OMR 5.00 Direct materials 3.00 Variable overhead 1.00 Variable cost per unit Fixed costs 9.00 Manufacturing OMR 110,500 Marketing 64,000 Administrative 45,500 Total fixed costs 220,000 Selling price per unit OMR 20 Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000.
Cost Schedules Variable costs Direct labor per unit OMR 5.00 Direct materials 3.00 Variable overhead 1.00 Variable cost per unit Fixed costs 9.00 Manufacturing OMR 110,500 Marketing 64,000 Administrative 45,500 Total fixed costs 220,000 Selling price per unit OMR 20 Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter13: Nonlinear Optimization Models
Section: Chapter Questions
Problem 2P: The Cobb-Douglas production function is a classic model from economics used to model output as a...
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Transcribed Image Text:Cost Schedules
Variable costs
Direct labor per unit
OMR 5.00
Direct materials
3.00
Variable overhead
1.00
Variable cost per unit
Fixed costs
9.00
Manufacturing
OMR 110,500
Marketing
64,000
Administrative
45,500
Total fixed costs
220,000
Selling price per unit
OMR 20
Requirements:
a. Compute break-even point in units using the mathematical equation.
b. Compute break-even point in sales rials using the contribution margin (CM) ratio.
c. Compute the margin of safety percentage assuming actual sales are OMR 500,000.
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