Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even point ( c) Margin of Safety Present sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 40000 Also calculate the sales required to maintain the profit OMR 65000.

Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even point ( c) Margin of Safety Present sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 40000 Also calculate the sales required to maintain the profit OMR 65000.

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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Q5 From the following particulars you are required to calculate (a) P/V ratio and (b) Break-even point ( c)
Margin of Safety
Present sales OMR. 200000
Variable cost OMR. 120000
Fixed cost OMR. 40000
Also calculate the sales required to maintain the profit OMR 65000.

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