Ibra Company makes radios that sell for OMR 30 each. For the coming year, management expects fixed costs to total OMR 220,000 and variable costs to be OMR18 per unit. Instructions (a) Compute the break-even point in Units and OMR using the contribution margin (CM) and contribution margin (CM) Ratio. (b) Compute the sales in OMR required to earn net income of OMR140,000.
Ibra Company makes radios that sell for OMR 30 each. For the coming year, management expects fixed costs to total OMR 220,000 and variable costs to be OMR18 per unit. Instructions (a) Compute the break-even point in Units and OMR using the contribution margin (CM) and contribution margin (CM) Ratio. (b) Compute the sales in OMR required to earn net income of OMR140,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ibra Company makes radios that sell for OMR 30 each. For the coming year, management
expects fixed costs to total OMR 220,000 and variable costs to be OMR18
per
unit.
Instructions
(a) Compute the break-even point in Units and OMR using the contribution margin (CM)
and contribution margin (CM) Ratio.
(b) Compute the sales in OMR required to earn net income of OMR140,000.
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