Dhofar Company has the following information: Total Fixed cost OMR 20000 Selling price per unit OMR 25 Variable cost per unit OMR 15, What will be the correct amount of Margin of safely at a profit of OMR 6000? Select one: O a. OMR 20000 O b. None of the options O c. OMR 13333 O d. OMR 15000

Dhofar Company has the following information: Total Fixed cost OMR 20000 Selling price per unit OMR 25 Variable cost per unit OMR 15, What will be the correct amount of Margin of safely at a profit of OMR 6000? Select one: O a. OMR 20000 O b. None of the options O c. OMR 13333 O d. OMR 15000

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: Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000…

A: Break Even Point - It is a point where, total cost and total revenue of the company will equal. This…

Q: Find out contribution margin if variable rate is.4 and the item's selling price is $12.50. (Round…

A: The contribution margin is the excess of sales over the variable cost of the company. In other…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280.…

A: Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (selling…

Q: Salalah Company has the following information: Sales = 5000 units @ OMR 10 per unit Break-even…

A: Sales = 5000 units @ OMR 10 per unit Beak Even Point = 3000 units Fixed Cost = OMR 6000 Formulas…

Q: A company sells two products in the ratio 2:1 A B £ £ Selling price 2030 Variable costs 1015 Given…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: he selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the…

A: Break even sales = Fixed costs/Contribution margin ratio Contribution margin ratio = Fixed…

Q: Alternative A Alternative B OMR 50,000 OMR 60,000 ts 30,000 30,000 10,000 16,000

A: Incremental revenues, costs or profits are the changes in revenue, cost or profit from one period…

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

A: Margin of Safety (OMR) Profit / PV ratio PV ratio Selling price - variable cost / selling price *100…

Q: S You have been provided with the following information: Sales Less variable expenses Contribution…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Q: MSN Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000…

A: PV ratio is calculated by dividing contribution by the sales and multiplying by 100.

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: = 5000 units with selling price of OMR 12 per unit, Break-even point = 4000 units, Fixed cost = OMR…

A: The amount of profit can be computed as follows :

Q: Assume in each case that the selling expenses are $9 per unit and that the normal profit is $6 per…

A: Upper Limit = Selling Price - Selling expenses Lower Limit = Upper Limit - Normal profit Market…

Q: Sales = 5000 units with selling price of OMR 12 per unit, Break-even point = 4000 units, Fixed cost…

A: Break-even point is the point at which the entity does not make any profit or loss That is Selling…

Q: Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even…

A: Breakeven Point: It refers to a point when the cost including fixed and variable equals the total…

Q: Determine the missing values: (Show your workings clearly) S.No. Unit Selling Price Unit Variable…

A: Contribution margin: Contribution margin can be defined as the excess of sale price over the…

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

Q: you have the following cost equation Y = 3000 + 10 X %3D units produced 1500 units. The total fixed…

A: The total cost is the sum total of total fixed cost and total variable cost. The cost equation is:…

Q: Exercise 1: From the following information calculate: (I) P/V Ratio (2) Break-Even Point (3)…

A: Break even point sales are the sales where business earns no profit no loss.

Q: 25-From the following information, calculate the amount of profit using marginal cost technique:…

A: Contribution = Sales - Variable Cost Profit/Net Income = Contribution - Fixed Cost

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: What is the incremental profit?

A: Incremental profit is the additional profit gained due to a managerial decision taken. In this case,…

Q: Question 2: Muscat Company has the following information. OMR 8750 Break even Sales 16000 Fixed Cost…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Question 2: Nizwa Company has the following information given in OMR. OMR Fixed Cost 14750 Break…

A: Solution a: Breakeven sales = 20,000 Contribution margin at breakeven sales = fixed costs = 14,750…

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

A: Margin of safety is the difference of actual sales revenue and breakeven sales revenue.

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

A: This question is related to financial management, in which we have to find the amount of sales on…

Q: If Sales are OMR 400000, Variable cost OMR 320000, Fixed cost OMR 100000. Which of the following…

A: Contribution margin = Sales - Variable cost = OMR 400000 - OMR 320000 = OMR 80000

Q: f the selling price per unit is $75, the variable expense per unit is $70, and total fixed expenses…

A: Contribution margin per unit = Selling price per unit - Variable expense per unit Break even sales…

Q: 50-By assuming fixed cost OMR 10,000, breakeven point OMR 22,000, variable cost per unit OMR 100 and…

A: Formula: Contribution = Sales price - variable cost. P/V ratio = Contribution x ( 100 / sales )

Q: Sales are 4000 units, fixed cost is 10000, selling price /unit= 30 OMR, variable cost /unit= 25 OMR…

A: Sales = 4000 units Fixed cost = 10000 Selling price = 30 OMR Variable cost = 25 OMR Contribution per…

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 Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Actual sales= OMR450000 Total fixed cost= OMR120000 Selling price per unit= OMR50 Variable price per…

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: 17-Assume that in one of the written test of your interview, the following question has been asked.…

A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…

Question

Dhofar Company has the following information:
Total Fixed cost OMR 20000
Selling price per unit OMR 25
Variable cost per unit OMR 15,
What will be the correct amount of Margin of safely at a profit of OMR
6000?
Select one:
O a. OMR 20000
O b. None of the options
O c. OMR 13333
O d. OMR 15000

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 1Basic Information

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 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

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
Use the below table to answer the following questions. Selling Price = $43.00 Fixed Cost $47,200 47, 200 47,200 57, 200 57, 200 57, 200 67,200 67,200 67,200 Required Variable Cost 15 16 17 15 16 17 15 16 17 2,200 $14,400 12, 200 10,000 4,400 2,200 (5,600) (7,800) (10,000) 3,200 $42,400 39, 200 36,000 32,400 29, 200 26,000 22,400 19, 200 16,000 Sales Volume 4,200 Profitability $70,400 66, 200 62,000 60,400 56,200 52,000 50,400 46, 200 42,000 5,200 $98,400 93,200 88,000 88,400 83,200 78,000 78,400 73,200 68,000 6, 200 $126,400 120, 200 114,000 116,400 110, 200 104,000 106,400 100, 200 94,000 a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an…
Salalah Company has the following information: Total Sales (Amount) = OMR 80000 %3D Selling Price per Unit= OMR 20 per unit Break-even point = 3000 units Fixed cost = OMR 15000 What is the correct amount of Total Variable Cost? Select one: O a. OMR 60000 O b. None of the options O c. OMR 65000 O d. OMR 50000
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
CLEAR MY CHOICE Mazoon Company's variable costs are 70% of the selling price and its fixed costs are $80,000. To realize profits of $20,000 from sales of 60,000 units, using the CVP equation, what would be the selling price per unit? O a. $4.44 O b. $5.56 O c. $1.66 O d. $2.38 O e. None of the given answers NEXT PAG GE re to search
21-Suppose you have attended an interview in Sohar SAOG, and the interviewer provide you the following information. and asked you to find out the profit. Given information are; Sales OMR 30000, Fixed expenses OMR 8000, Breakeven point OMR 18,000. Find out the profit at the given sales level. a. OMR 10000 b. OMR 12000 c. None of the given options d. OMR 5500
Total Fixed cost OMR 25000, Selling Price per unit OMR 20, and Variable cost per unit OMR 12, What will be the Quantity (units) of sales if it is desired to earn a profit of OMR 18000 Select one: O a. 3125 Units O b. 10000 Units O c. 2083.33 Units O d. 1000 Units
23. Mohammed LLC interested to know the Average profit of the company. It asks you to calculate the Average Profit from the given details. The total cost is RO 40000, Sales RO 80000 and Original Investment is RO 30000. a. RO 40000 b. None of the options c. RO 90000 d. RO 120000
Salalah Company has the following information: Total Sales (Amount) = OMR 80000 Selling Price per Unit= OMR 20 per unit Break-even point = 3000 units Fixed cost = OMR 15000 What is the correct amount of Total Variable Cost? Select one: a. None of the options b. OMR 50000 c. OMR 65000 d. OMR 60000
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 New BE point if selling price is reduced by %25
Sales are 140000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost Select one: O a. 20000 OMR O b. None of them c. 60000 OMR d. 50000 OMR