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: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 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 23E
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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.
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