Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 90000 120000 Year Variable Costs 2019 405000 225000 2020 450000 240000 Calculate: a) P/V ratio, b) B.E.P in units and Sales c) Sales required to earn a profit of OMR 40000.Each year is separate, you should calculate the required values for both years.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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Question 3: Sohar Company's financial information is given in the table below.
Sales (OMR) Fixed Costs
405000
Year
Variable Costs
2019
90000
225000
2020
450000
120000
240000
Calculate:
a) PV ratio,
b) B.E.P in units and Sales
c) Sales required to earn a profit of OMR 40000.Each year is separate, you
should calculate the required values for both years.
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 Year Variable Costs 2019 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, b) B.E.P in units and Sales c) Sales required to earn a profit of OMR 40000.Each year is separate, you should calculate the required values for both years. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
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