How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the contribution margin ratio is 40%? Select one: a. OMR 1,125,000 b. OMR 500,000 c. OMR 1,012,500 O d. OMR 625,000 O e. None of the answers are correct

How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the contribution margin ratio is 40%? Select one: a. OMR 1,125,000 b. OMR 500,000 c. OMR 1,012,500 O d. OMR 625,000 O e. None of the answers are correct

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR 250,000 and the
contribution margin ratio is 40%?
Select one:
a. OMR 1,125,000
Ob. OMR 500,000
c. OMR 1,012,500
O d. OMR 625,000
O e. None of the answers are correct
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