From the following data, calculate:Fixed Expenses OMR 12000.Break-Even point OMR 20000.(a) P I V Ratio.(b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36)(c) New break-even point if selling price is increased by 20%. 94 From the following data, calculate:Fixed Expenses OMR 12000.Break-Even point OMR 20000.(a) PIV Ratio.(b) Profit when sales are OMR 80000 & v.C is OMR 18000. (Variable cost per unit OMR 36)(c) New break-even point if selling price is increased by 20%.

Break-even point: The point where there is neither profit nor loss is called the break-even point.…

Answered: From the following data, calculate:…

From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) P I V Ratio. (b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

See similar textbooks

Related questions

Q: Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs…

A: Margin of safety: It can be defined as the difference between the actual sales and the sales at the…

Q: How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit…

A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000

Q: Variable expenses are 60% of sales. At a R400 000 sales level, the degree of operating leverage is…

A: The term sales revenue represents gross earnings produced by a business entity before adjusting for…

Q: The following information relates to financial projections of Folk Company: Projected sales…

A: Degree of operating leverage (DOL): DOL reflects variable and fixed cost relationship of an…

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Actual sales = OMR 490000 Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable…

Q: 94 From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) PIV…

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: Massey Company reported the following data regarding the product it sells: Sales price Contribution…

A: Answer a) Computation of Break even point in dollars and units is as follows: Break even point in…

Q: Find the missing values in the table below with different amount of sales and change in variable…

A: Current sales in dollars for 600 units ; Sales = $154000 Variable expenses = $36000 Contribution…

Q: NAPOLEN SALES REVENUE IS $ 500000 , VARIABLE COST IS 20000 , FIXED C OST FOR THE YEAR IS 50000 SHOW…

A: Formula used: Net profit = Total revenues - Total Expenses Deduction of expenses from revenues…

Q: 6. The sales and profit for two years are as below: Sales Profit Sales Profit 2002 150000 20000 2003…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: A company has provided the following data: Sales Sales price Variable cost Fixed cost If the dollar…

A: There are two type of costs incurred in the business. One is fixed costs and other is variable…

Q: 1. What are the variable expenses per case? 2. What is the break-even point in units? 3. What amount…

A: Break-Even Point:It is the level of sales achieved by the firm where profit is zero. Hence all the…

Q: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000…

A: Breakeven sales is that amount of sales revenue at which business is recovering its fixed costs and…

Q: Determine the Break-even point in terms of sales value and in units. b. How many units must be sold…

A: Solution Formula used Breakeven point in unit =total fixed cost /contribution margin…

Q: Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also…

A: The sales mix of a firm can affect the overall profit of the firm because of the different…

Q: You are given the following data: Fixed expenses OMR. 4,000 Break-even point OMR. 10,000…

A: At break even point , Contribution margin - fixed expenses = 0 Contribution margin - OMR 4000 = 0…

Q: Assume that sales are predicted to be $26,250, the expected contribution margin is $10,500, and a…

A: Breakeven Sales Revenue It is that volume of sales that are required to meet the total cost.…

Q: Salalah Company has the financial information given in the table for the year ended on 31 December…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit = 275 - 125 = 150 per…

Q: Given the following information. answer the questions:• The ratio of variable cost per unit divided…

A: (a) Draw the cost volume profit diagram: Units Sales ($1) Variabe costs ($0.25) Fixed costs…

Q: a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?

A: Break even point = Fixed cost/ PV ratio. PV ratio = Sales - Cost to volume ratio. In…

Q: The following information relates to fin ancial projections of NUBDCompany: Projected sales…

A: Degree of operating Leverage: Degree of Operating Measure that in response to change in sales how…

Q: Sales are 440000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost a.…

A: Sales = 440000 OMR Variable cost = 110000 OMR Profit = 10000 OMR

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Margin of safety is the difference of actual sales revenue and breakeven sales revenue.

Q: If profit and fixed cost are 80,000 and 2,80,000 respectively, the total variable cost and…

A: This question will be done in an indirect way. As we know , at break even point there is no profit…

Q: Find the missing values in the table below with different amount of sales and change in variable…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: Given that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true…

A: a) The cost-sales line rises $2 for each increase of $10 in sales volume. So putting the above value…

Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable cost per unit = OMR 35 Actual…

Q: A B C P12 Selling price per unit Variable cost per unit P25 P15 P10 P6 P5 Fixed operating costs…

A: Contribution margin per unit = sales price - variable cost per unit Break-even point = Fixed costs /…

Q: APPLY THE CONCEPTS: Use the CVP graph to analyze the effects of changes in price and costs Graph the…

A: The level/point at which the expenses of the business organizations are equal to their revenues is…

Q: Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If Actual sales are OMR 620000, Total Fixed costs OMR 115000, Selling price per unit OMR 60, and…

A: The margin of safety sales are calculated as difference between current sales and break even sales.…

Q: If Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Actual sales= OMR450000 Total fixed cost= OMR120000 Selling price per unit= OMR50 Variable price per…

Q: Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $14400.…

A: The breakeven point in dollars can be calculated as fixed cost divided by the contribution margin…

Q: If Actual sales are OMR 600000, Total Fixed costs OMR 150000, Selling price per unit OMR 50, and…

A: Margin of safety sales means sales revenue over and above breakeven sales revenue. Margin of Safety…

Q: Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even…

A: P/V or Profit Volume Ratio is calculated as Contribution / Sales Here, Contribution = Sales -…

Q: Q4 From the following data, calculate: (a) PIV Ratio. (b) Profit when sales are OMR 40000. (c) New…

A: Break-even sales represent that particular point of sale where there is no operating profit/loss. If…

Q: Complete the following problems using the following ratios:…

A: Break even point at target profit is the point at which the sales generate the target profit. Hence,…

Q: Complete the following problems using the following ratios:…

A: Break Even Point is the point where firms earns "No Profit & No Loss". This is the point where…

Q: How many units would NUBD Company need to sell to earn a profit after taxes of P15,000? * The…

A: Solution: Contribution margin per unit = Selling price - Variable costs = P7 - P2 = P5 per unit…

Q: Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sun-parts for…

Q: A projected income statement of Hailwork’s company for the coming year follows: Sales $506300…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…

Q: Calculate the information below and use income statement A) PV ratio B)profit when sales are…

A: At break even point , Contribution margin - fixed expenses = 0 Contribution margin - 4000 = 0…

Q: Based on the facts of Easy Problems Corp. If variable costs per unit will go up by Php 5.00, the…

A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…

Q: Calculate the information below A) PV ratio B)profit when sales are 20000 C)New BE point if…

A: SOLUTION- BREAK EVEN POINT = IT IS A POINT WHERE TOTAL COST AND TOTAL REVENUE OF THE COMPANY WILL…

Q: Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40…

A: Margin of Safety is the difference between the current sales and the breakeven sales.

Question

From the following data, calculate:

Fixed Expenses OMR 12000.

Break-Even point OMR 20000.

(a) P I V Ratio.

(b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 a) Computation of profit volume ratio

VIEW

Step 3 a) Answer

VIEW

Step 4 b) Computation of profit when sales is OMR 80,000

VIEW

Step 5 b)Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?