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: O a. None of the answers are correct O b. 400,000 O c. 700,000 O d. 300,000 O e. 100,000
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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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: 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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- Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.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)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.
- Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .62 percent per month. Current Policy New Policy Price per unit $ 760 $ 760 Cost per unit $ 555 $ 555 Unit sales per month 820 870 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)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 theseThe following information on actual and projected costs and revenues is available for Carson Enterprize. Dates Sales $ Purchases $ Oct. 2020 80 000 65 000 Nov. 2020 60 000 45 000 Dec. 2020 90 000 75 000 Jan. 2021 50 000 35 000 Feb. 2021 60 000 45 000 Mar. 2021 70 000 55 000 April 2021 60 000 45 000 You are given the following additional information: Based on past analysis, 20% of sales tend to be for cash while the remainder is normally settled as follows: 60% in the month following sales and 40% two months after sale. Carson enterprise normally pays 50% of the cost of purchases in the month of purchase and the remainder in the following month. New equipment will be purchased for $9,000 in January and this will be paid for in equal instalments in January, February and March. Old equipment is expected to be sold for $2,500 in February. Depreciation of the new equipment will be 10% per annum and will be charged to the…
- 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 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 ExpenseABC 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 50,000
- 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. 63000USM records $120,000 of sales in the month of December 2020. USM estimates that $10,000 of returns of December sales will eventually be returned. As of December 31, 2020, $2,000 of returns have been processed. Assuming zero balance in the refund liability account, what is the effect of the entry necessary at December 31 to record estimated returns? Omit the cost of sales entry. Group of answer choices: a,) Decrease revenues and increase liabilities for $8,000 b.) Decrease revenues and increase liabilities for $10,000 c.) Increase expenses and Increase Liabilities for $8,000 d.) Increase expenses and Increase Liabilities for $10,000 e.) None of the aboveRedRed Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .84 percent per month. Current PolicyNew PolicyPrice per unit$ 980$ 980Cost per unit$ 790$ 790Unit sales per month1,0401,120 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)