Exercise 9: You are given the following data: Fixed expenses OMR. 4,000 Break-even point OMR. 10,000 Calculate-- (i) P/V ratio (ii) Profit when sales are OMR. 20,000 (iii) New break-even point if sales are reduced by 20%
Exercise 9:
You are given the following data:
Fixed expenses OMR. 4,000
Break-even point OMR. 10,000
Calculate--
(i) P/V ratio
(ii) Profit when sales are OMR. 20,000
(iii) New break-even point if sales are reduced by 20%
Exercise 10:
Given the following information:
Units of output 500,000
Fixed cost OMR 750,000
Variable cost per unit OMR 2
Selling price per unit OMR 5
You are required to determine:
(i) The break-even point
(ii) The sales needed for a profit of OMR 600,000 and
(iii) The profit if 400,000 units are sold at OMR 6 per unit
Exercise 11:
The following data is given: OMR.
Selling price 20 per unit
Variable
Variable selling costs 3 per unit
Fixed factory overheads 540,000 per year
Fixed selling costs 252,000 per year
You are required to compute:
(i) Contribution
(ii) Break-even point expressed in amount of sales in rials;
(iii) Number of units that must be sold to earn a profit of OMR. 60,000 per year;
(iv) How many units must be sold to earn a net income of 10% of sales?
Exercise 12:
You are given the following data:
Year Sales Profit
2018 OMR 120,000 8,000
2019 OMR 140,000 13,000
Find out-
(i) P/V ratio,
(ii) B.E. Point,
(iii) Sales required to earn a profit of OMR. 12,000
(iv) Margin of safety in year 2018.
(v) Profit when sales are OMR. 180,000
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