Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following а) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) Total fixed cost 800,000 |450,000| Selling price per unit Variable cost per unit 275 125

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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Question 1: Salalah Company has the financial information
given in the table for the year ended on 31 December 2020.
Calculate the following
а)
Break-even point (in units and amount)
b) PV ratio
c) Margin of Safety (as amount and as percentage)
OMR
Sales (actual)
800,000
Total fixed cost
450,000
Selling price per unit
Variable cost per unit
275
125
Transcribed Image Text:Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following а) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 Total fixed cost 450,000 Selling price per unit Variable cost per unit 275 125
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