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 units?
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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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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A: Break even point is the number of units sold leads to no profit no loss to the business.
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A: Answer is option a) 338,462
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A: Break-even analysis is a technique widely used by the production department. It helps to determine…
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A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
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: The break-even point is a level where the company incur neither gain nor loss. It is calculated by…
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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 ratio = Contribution margin / Total sales x 100 Where, Contribution margin…
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Q: In 2019, Crane Company sold 3000 units at $250 each. Variable expenses were $140 per unit, and fixed…
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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…
Q: In 2019, Papa Company provided the following data: Sales price per unit P100; Variable cost per unit…
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?In 2019, Sheffield Corp. sold 3800 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $240000. What was Sheffield’s 2019 net income?In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating Expense
- Remar, Inc. reported the following results from sales of 5,000 units of Product C for the month of June 2019 (refer to the attached picture): Assume that Remar, Inc. increases the selling price of Product C by 10% on July 1, 2019. How many units of Product C would have to be sold in July 2019 in order to generate an operating income of P20,000? sales 200,000 variable cost 120,000 fixed cost 60,000 operating income 20,000In 2019, Bramble Corp. sold 3000 units at $400 each. Variable expenses were $320 per unit, and fixed expenses were $270000. The same selling price, variable expenses, and fixed expenses are expected for 2020. What is Bramble’s break-even point in units for 2020? 3375. 1688. 675. 844.Turtle Inc.’s income statement for the year 2019 on production and sales of 200,000 units is as follows: Revenues P2,600,000 Cost of good sold 1,600,000 Gross margin 1,000,000 Marketing and distribution costs 1, 150,000 Operating income (loss) P(150,000) Turtle’s fixed manufacturing costs included in the cost of sales were P500,000, and the variable portion for marketing and distribution costs were P 800,000. The break-even point for Turtle for the year 2019 in units is 242,858 55,555 68,965 142,856 Group of answer choices 1 2 3 4
- The net sales of JEY Company in 2019 is ₱580,000. The cost of goods manufactured is ₱480,000. The beginning inventories of goods in process and finished goods are ₱82,000 and ₱65,000, respectively. The ending inventories are: goods in process –₱75,000; finished goods –₱55,000. The selling expenses and general and administrative expenses are 5% and 2.5% of cost of sales, respectively. How much would be the net profit before tax in the year 2019? 45,725 ₱ 53,250 ₱ 90,000 ₱ 83,000ABC Limited sells its product at the rate of 30 per unit. During the quarter ending on 31st March, 2019, it produced and sold 16,000 units andsuffered a loss of 10 per unit. If the volume of sales is raised to 40,000 units; it can earn a profit of 8 per unit. calculate: Break Even Point in Profit if the sale volume is 50,000Ivanhoe Inc. had sales of $2,300,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $940,000 $464,000 Selling expenses 74,000 54,000 Administrative expenses 96,000 145,000 Prepare a CVP income statement for the quarter ended March 31, 2020. IVANHOE INC.CVP Income StatementFor the Quarter Ended March 31, 2020 Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs $ Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross…
- In 2019, Crane Company sold 3000 units at $250 each. Variable expenses were $140 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2020. If Crane cuts selling price by 4%, what is Crane’s break-even point in units for 2020? 7386. 7091. 7500. 7800.In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P350 per unit, and fixed expenses were P195,000. The same variable expenses per unit and fixed expenses are expected for 2021. If National Co. cuts selling price by 4%, what is National Co.’s break-even point in units for 2021?ABC Inc. has sales of $2,000,000 for the first quarter of 2019. In making the sales, the company incurred the following costs and expenses. Variable Fixed Product cost $760,000 $600,000 Selling expenses 95,000 60,000 Administrative expenses 79,000 66,000 Instruction: Prepare a CVP income statement for the quarter ended March 31, 2019.