Question 4: Dhofar Company manufactures twoproducts M1and Z1. Its sales department has three divisions: Salalah,Raysut and Mirbat. TInitial estimates for the sales budgets for the year ending 31.December 2021 which are based on theassessments of thedivisional executives are as follows;Product M1: Salalah 45,000 units: Raysut 110,000 units and-Mirbat: 25,000 units|Product Z1: Salalah 70,000 units: Raysut 82,000 units and-Mirbat:0|Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas.Arrangements are made for the extensive advertising ofproduct M1 and Z1 and it is estimated that Salalah division:sales will increase by 30,000 units. Arrangements are alsomade to advertise and distribute product z1 in the Mirbat area·in the second half of 2021 when salesare expected to be100,000 units.¶Since the estimated sales of the Raysut division represented·an unsatisfactory target, it is agreed to increase both theestimates by 15-%.Prepare a sales budget for the year to 31 December 2021.| Question 2: Muscat Company has the following information. TOMRFixed Costa8750Break even Sales16000a)>PV Ratiolib)>Profit when sales are 20000c)> New BE point if selling price is reduced by %25||Question 3: Sohar Company's financial information is given-in the table below. TYear2019a2020aSales (OMR) Fixed Costs405000450000Variable Costs22500024000090000| 120000Calculate:a)>PV ratio, Tb)>B.E.P. Tc)> Sales required to earn a profit of OMR 40000. ¶|d)→Margin of safety at a profit of OMR:50000-Te)>Profit when sales are OMR. 200000. T

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Question 2: Muscat Company has the following information. I OMR Fixed Costa 8750 Break even Sales 16000 a) PV Ratiol b) Profit when sales are 20000| c)> New BE point if selling price is reduced by %25||

Question 2: Muscat Company has the following information. I OMR Fixed Costa 8750 Break even Sales 16000 a) PV Ratiol b) Profit when sales are 20000| c)> New BE point if selling price is reduced by %25||

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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