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ABC Computers (January) Actual (OMR) Target (OMR) Sales Turnover 277,350 325,000 Sales Tax (14%) 38,829 45,500 Net Turnover 238,521 279,500 Labor Costs 166,000 175,000 Other

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ABC Computers (January) Actual (OMR) Target (OMR) Sales Turnover 277,350 325,000 Sales Tax (14%) 38,829 45,500 Net Turnover 238,521 279,500 Labor Costs 166,000 175,000 Other Costs 36,000 41,000 Gross Profit 36,521 63,500 > If actual labor costs rise so as to halve their difference from the target, what will be the change in actual Gross Profit? A) Falls by OMR 4,500 B) Rises by OMR 4,500 C) No overall effect D) Rises by OMR 9,000

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