Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR 600,000 and fixed expenses were OMR 300,000. What is the break-even point in sales (Dollars / Omani Riyals)? Select one: a. 400,000 b. 100,000 c. 300,000 d. None of the answers are correct e. 700,000
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Contribution- When the total sales value of the entity exceeds the variable expenses, then the…
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Break Even point in sales = Fixed CostContribution Margin Here Contribution margin = Selling Price…
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A: Solution: Fixed costs = Breakeven sales * CM ratio = P400,000 * 40% = P160,000
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Break Even Point in OMR = Total Fixed Cost / Contribution Margin Ratio Here , Contribution Margin…
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Contribution margin measures the growth of the company based on a particular good or service.
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
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A: Annual Fixed expenses can be calculated using the Breakeven formula.
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Contribution margin ratio = Contribution margin / Total sales x 100 Where, Contribution margin…
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Answer: Option C is the Correct answer i.e. 8.
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
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Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Contribution Margin: It is computed by the formula Sales-variable cost= contribution. As can be…
Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…
A: Breakeven point is that point of sales revenue at which business is recovering its fixed costs and…
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per unit. NewB’s monthly fixed expense is P3,000,000. Let Q be the number of units manufactured. e. Determine the breakeven point in units sold and sales in pesos. f. Compute required sales needed to achieve a target net income of₱1,500,000 in units sold and sales in pesos g. Determine margin of safety if current sales is P8,750,000
- This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue( total revenue is $20million), The amount of shipping cost assigned to the customer by using ABC would be a. Unable to be determined. b.$8,000($0.80per pound shipped) c.$24, 000(2% of the shipping cost) d. $12,000(1% of the shipping cost) e. None of theseThis year, Lambert Company will ship 1,500,000 pounds of goods to customers ata cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 ofrevenue (total revenue is $20 million), the amount of shipping cost assigned to thecustomer by using ABC would bea. unable to be determined.b. $8,000 ($0.80 per pound shipped).c. $24,000 (2% of the shipping cost).d. $12,000 (1% of the shipping cost).e. None of these.Give what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?
- Lindon Company is the exclusive distributor for an automotive product that sells for $56.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $411,600 per year. The company plans to sell 29,300 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $243,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.60 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $243,600?Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $345,000 per year. The company plans to sell 27,200 units this year. Required: What are the variable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. What is the break-even point in unit sales and in dollar sales? What amount of unit sales and dollar sales is required to attain a target profit of $195,000 per year? Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.00 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $195,000?Jonick Company has sales of $740,000, and the break-even point in sales dollars is $547,600. Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number.fill in the blank 1 %
- The following data are given on current operations of MOMS Trading: Sales volume (unis) 108,000 Unit selling price P10.00 Unit variable costs and expenses 4.00 Fixed costs and expenses 320,000 Gross profit rate 40% Terms of sale 25 days charge Minimum desired rate of return 30% A proposal has been presented to the effect that the terms of sales be prolonged to 30 days at the current selling price in order to increase sales volume by 25%. There are objections to the said proposal because of possible loss from bad debts estimated at 2% of increased sales and an expected increase in inventory requirement despite the plan to maintain it at its current level that is equal to 25 day’s sales. Do you agree to the proposal? Why? Show computationsGentry, Inc. sells only two products, Product A and Product B. The following data relate to expected sales for the coming period: Product A Product BSales units 20,000 30,000Sales revenue $240,000 $300,000Variable costs $140,000 $120,000Fixed costs $89,168 $73,820 16. How many units of each product are needed for Gentry to breakeven at the given sales mix? (Do not round relevant intermediate calculations, such as percentages). a. 10,980 units of Product A and 16,470 units of Product Bb. 5,976 units of Product A and 8,963 units of Product Bc. 8,810 units of Product A and 13,215 units of Product Bd. 2,166 units of Product A and 17,697 units of Product Be. 17,834 units of Product A and 12,303 units of Product Bf. 11,642 units of Product A and 17,463 units of Product B g. 11,146 units of Product A and 10,546 units of Product Bh. None of the above. 17. Given their current operating income, by…The Rachel Company has sales of $450,000, and the break-even point in sales dollars is $292,500. Determine the company's margin of safety as a percent of current sales.fill in the blank 1 %
