Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Year Variable Costs 2019 90000 225000 2020 120000 240000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 18E
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Question 3: Sohar Company’s financial information is given in the table below.

Year

Sales (OMR)

Fixed Costs

Variable Costs

2019

405000

90000

225000

2020

450000

120000

240000

 

Calculate:

  1. P/V ratio,
  2. E.P.
  3. Sales required to earn a profit of OMR 40000.
  4. Margin of safety at a profit of OMR 50000
  5. Profit when sales are OMR. 200000.
Question 3: Sohar Company's financial information is given in the table below.
Sales (OMR) Fixed Costs
405000
450000
Year
Variable Costs
2019
90000
225000
2020
120000
240000
Calculate:
a) P/V ratio,
b) B.E.P.
c) Sales required to earn a profit of OMR 40000.
d) Margin of safety at a profit of OMR 50000
e) Profit when sales are OMR. 200000.
Transcribed Image Text:Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Year Variable Costs 2019 90000 225000 2020 120000 240000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
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