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? Select one: a. 400,000 b. 37,500 O c. None of the answers are correct O d. 750,000 e. 75,000

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? Select one: a. 400,000 b. 37,500 O c. None of the answers are correct O d. 750,000 e. 75,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...

See similar textbooks

Related questions

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…

Q: NUBD Company is a medium-sized manufacturer of lamps. During 2021, a new line called "Excellence"…

A: Solution: Fixed costs = Breakeven sales * CM ratio = P400,000 * 40% = P160,000

Q: Mahrouq Technologies buys $12,726,823 of materials (net of discounts) on terms of 1/30, net 60, and…

A: Normal cost of trade credit can be calculated by using this equation Normal cost of trade credit…

Q: Nizwa Co. has the following information available for December 2019: Total fixed costs OMR 240,000…

A: Breakeven point means sales revenue at which business is recovering it's fixed costs and variable…

Q: e variable selling cost is £3 per unit. Fixed administrative and other operating expenses are…

A: Given: To calculate the absorption costing valuation of closing inventory as,

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.

Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…

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

Q: In 2019, Rivera Company presented the net income after(40%) tax of P5,520,000 as follows: Average…

A: Answer is option a) 338,462

Q: ABC Company has the following information: Variable Cost per Unit is P 15; Fixed Expenses is…

A: Total Sales = 10,000 units x P20 = P200,000 Total Variable cost = 10,000 units x P15 = P150,000…

Q: Derst Inc. sells a particular textbook for $36. Variable expenses are $29 per book. At the current…

A: Formula: Contribution Margin per Unit =( Sale Price per Unit - Variable Expense per unit) =…

Q: On July 10, 2020, Bonita Ltd. sold GPS systems to retailers on account for a selling price of…

A: Journal: Recording of a business transactions in a chronological order.

Q: Nizwa Co. has the following information available for December 2019: Unit selling price of a TV unit…

A: Break Even Point= Fixed Cost/Contribution per unit Fixed Cost= 240000 Contribution per unit= sale…

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…

Q: Octopus Company provides you with the following information regarding its inventory Maximum lead…

A: a) Economic order quantity or EOQ is the optimal quantity of inventory to be ordered. EOQ helps…

Q: In 2019, Ramos Company presented the net income after(40%) tax of P5,520,000 as follows: Average…

A: The Break even point is the best measure to determine the relationship between the cost - profits…

Q: n 2019, Bramble Corp. sold 3000 units at $400 each. Variable expenses were $320 per unit, and fixed…

A: Contribution margin per unit = Sales revenue per unit - Variable expense per unit =$400 -…

Q: Tamarisk Inc is a company that manufactures and sells a single product. Unit sales for each of the…

A: Profitability means revenue minus expenses, whatever is left over is the profit. Businesses can’t…

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…

Q: In 2018, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a…

A: Formula: Contribution margin = Fixed cost - Net loss

Q: Muscat Pharmacy had sales of RO 1,000,000 (50,000 units) for 2019. The variable expenses were RO…

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

Q: Moon company has an average selling price of OMR 20 per unit and an average variable cost of OMR 13…

A: Operating income: It can be defined as the company’s aggregate profits after subtracting all the…

Q: Ansell plc produces 2,400,000 units in 2020. The variable production cost per unit is £8. Fixed…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Nizwa Co. has the following information available for December 2019: Total fixed costs OMR 240,000…

A: Break even sale is the point of sale where no profit and no loss incurred. It is the point of sale…

Q: what is the sales amount needed in spite of 15% increase in variable cost of candy?

A: Calculate the total contribution margin required for 2020 as shown below: Contribution margin =…

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.

Q: Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from…

A: The break-even point is when total cost and total income are equal, indicating that your small firm…

Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…

A: Here the solution needed for Weighted average method, First in first out method(FIFO) and Last in…

Q: Mahrouq Technologies buys $14,962,649 of materials (net of discounts) on terms of 5/30, net 60, and…

A: Credit terms are terms that indicate possible discounts, late payment fees, applicable interest, and…

Q: Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR…

A: Variable cost is a cost is directly related to level of production and can be zero at zero level of…

Q: Covid2020 Furniture is operating at almost 100% capacity. The company expects sales to increase by…

A: Break even point (Sales) = Fixed Cost/ PV ratio PV Ratio = Contribution/ Sales Contribution = Sales…

Q: In 2019, Dayao Company presented the net income after(40%) tax of P5,520,000 as follows: Average…

A: Contribution margin per unit = Sales price - total variable cost = 200 - (100 + 20)…

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…

Q: Sanchez, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale…

A: Net present value (NPV) is the present value of all the future benefits minus the initial cost .…

Q: Last month, when Holiday Creations, Inc. sold 50,000 units, total sales were $200,000, variable…

A: Contribution Margin: The contribution margin is the amount remaining after deducting variable…

Q: F3-5 A suppller sells MF Tires to dealers. The annual demand is approxlmately 1,000 tires. The…

A: Economic order quantity is the order quantity that is used by the businesses with a view to minimize…

Q: Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR…

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

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…

Q: In 2019, Dela Cruz Company presented the net income after(40%) tax of P5,520,000 as follows: Average…

A: Answer) Calculation of Break-even Sales Volume in 2020 Break-even Sales Volume in 2020 = (Fixed…

Q: The Crandall store begins each week with 220 phasers carrying cost per phaser is $17 per year and…

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: Bahati Masimba Ltd are retailers who sell tiles. During the month of July to September 2019, there…

A: Ending Inventory=Beginning…

Q: X Company had the following information available for 2020: Number of units sold 30,000 units…

A: Given, Selling price per unit = $1,000 Variable price per unit = $650 Total fixed cost = $8,750,000

Q: Moon company has an average selling price of OMR 20 per unit and an average variable cost of OMR 13…

A: Selling price per unit = 20 Variable cost per unit = 13 Contribution per unit = 7 Operating income =…

Q: . Eren Company is manufacturer of its only one product line. It had sales of P400,000 for 2019 with…

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

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: Francona inc sold bobblehead dolls with a cost of $267,000 to retailers on account and recorded…

A: Sales returns are return of goods from the customers to whom business has made sales.

Question

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?
Select one:
Oa. 400,000
O b. 37,500
c. None of the answers are correct
d. 750,000
e. 75,000
Clear my choice

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

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

Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?
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?
Deuce 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.)
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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 20,000
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 these
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
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.
This 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.
In 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.
Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 12000 b. None of the options c. OMR 10000 d. OMR 20000 2) Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 -Tax 3,000 Net Profit 7,000 Select one: a. 54000 b. 56000 c. 59000 d. 63000