Question 1: Muscat Company has the financial information given in the table for the year ended on 30 September 2021. It is assumed that volume of production and volume of sales are equal. According to the information given, you are required to calculate the following; a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and percentage) as OMR Sales (actual) 1,600,000 Total fixed cost 900,000 Selling price per unit Variable cost per unit 375 225
Question 1: Muscat Company has the financial information given in the table for the year ended on 30 September 2021. It is assumed that volume of production and volume of sales are equal. According to the information given, you are required to calculate the following; a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and percentage) as OMR Sales (actual) 1,600,000 Total fixed cost 900,000 Selling price per unit Variable cost per unit 375 225
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.1MBA
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![Question 1: Muscat Company has the financial
information given in the table for the year ended
on 30 September 2021. It is assumed that volume
of production and volume of sales are equal.
According to the information given, you are
required to calculate the following;
a) Break-even point (in units and amount)
b) PV ratio
c) Margin of Safety (as
percentage)
amount and
as
OMR
Sales (actual)
1,600,000
Total fixed cost
900,000
Selling price per unit
375
Variable cost per unit
225](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3b8e68f-3309-475d-aa8e-1dccd17db797%2F204c1180-bb59-4244-b650-e14610c9da53%2Fte7g8ps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1: Muscat Company has the financial
information given in the table for the year ended
on 30 September 2021. It is assumed that volume
of production and volume of sales are equal.
According to the information given, you are
required to calculate the following;
a) Break-even point (in units and amount)
b) PV ratio
c) Margin of Safety (as
percentage)
amount and
as
OMR
Sales (actual)
1,600,000
Total fixed cost
900,000
Selling price per unit
375
Variable cost per unit
225
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