Problem 1The M/S Smooth flow Companymanufactures a certain fountain pen. Thefixed costs of the company are RO.300,000per year. The unit selling price (net) is RO.8and the unit variable cost is RO.5. At presentthe firm manufactures and sells 140,000fountain pens.Determine:(i) Break Even Quantity(ii) Break Even Sales(iii) Margin of SafetyIn terms of unitsIn terms of value(iv)Plot the Break Even Chart

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Answered: (i) Break Even Quantity (ii) Break Even…

Business

Accounting

(i) Break Even Quantity (ii) Break Even Sales (ii) Margin of Safety In terms of units In terms of value

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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