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Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000.

Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2- Please solve these sub-parts of this question on urgent basis. Thanks

ABC Company has the following data for the month of May 2019: Cost Schedules Variable costs Direct labor per unit OMR 5.00 Direct materials 3.00 Variable overhead 1.00 Variable cost per unit 9.00 Fixed costs Manufacturing OMR 110,500 Marketing 64,000 Administrative 45,500 Total fixed costs 220,000 Selling price per unit OMR 20 Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000. d. Compute the sales required in rials to eam net income of OMR 165,000. e. Compute the sales required in rials to ean net income of OMR 165,000 if the variable cost per unit has increased to 11 OMR and total fixed cost has increased to 250,000.
Transcribed Image Text:ABC Company has the following data for the month of May 2019: Cost Schedules Variable costs Direct labor per unit OMR 5.00 Direct materials 3.00 Variable overhead 1.00 Variable cost per unit 9.00 Fixed costs Manufacturing OMR 110,500 Marketing 64,000 Administrative 45,500 Total fixed costs 220,000 Selling price per unit OMR 20 Requirements: a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales rials using the contribution margin (CM) ratio. c. Compute the margin of safety percentage assuming actual sales are OMR 500,000. d. Compute the sales required in rials to eam net income of OMR 165,000. e. Compute the sales required in rials to ean net income of OMR 165,000 if the variable cost per unit has increased to 11 OMR and total fixed cost has increased to 250,000.
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