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Question 1 Not yet answered Marked out of 2.00 P Flag question Muscat Pharmacy had sales of RO 1,000,000 (50,000 units) for 2019. The variable expenses were RO 600,000 and fixed expenses were RO 300,000. What is the contribution margin per unit? Select one: O a. None of the answers are correct O b. 400,000 O c. 4 O d. 40% O e. 8 Question 3 Not yet answered Marked out of 2.00 Flag question Nizwa Co. has the following information available for December 2019: Total fixed costs R.O. 240,000 Units sold 400 Unit selling price of a TV unit R.O. 2,000 Unit variable costs R.O.500 The contribution margin ratio is: Select one: O a. 0.75 O b. 1,500 O c. 600,000 O d. None of the answers are correct O e. 0.25 Question 4 Not yet answered Marked out of 2.00 P Flag question Al Madinah Tire Company is considering the following alternatives: Alternative 1 Alternative 2 Revenues OMR 120,000 OMR 115,000 Shipping costs 60,000 70,000 Repair costs 45,000 25,000 When looking at shipping costs, choosing Alternative 2 will affect net income by a: Select one: O a. 10,000 increase O b. 15,000 decrease O c. None of the answers are correct O d. 5,000 decrease O e. 10,000 decrease Question 2 Not yet answered Marked out of 2.00 P Flag question It costs Ghala Company RO 13 of variable and RO 6 of fixed costs to produce one unit which normally sells for RO 35. Al Hadid Co. offers to purchase 3,000 units at RO 15 each. Ghala Co. would incur shipping costs of RO 1 per unit if the order were accepted. Ghala Co. has sufficient unused capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: a. RO 45,000 increase O b. RO 9,000 decrease O c. None of the answers are correct O d. RO 6,000 increase e. RO 3,000 increase Lizug Company reported the following year- end information: Beginning work in process inventory RO 1,080,000 Beginning raw materials inventory 300,000 Ending work in process inventory 800,000 Ending raw materials inventory 480,000 Raw materials purchased 960,000 Direct labor 1,000,000 Manufacturing overhead 720,000 Lizug Company's cost of goods manufactured for the year is: Select one: a. None of the answers are correct O b.RO 2,220,000. O c. RO 2,400,000. O d. RO 2,780,000. e. RO 2,680,000. Question 6 Not yet answered Marked out of 2.00 P Flag question Bidbid Company manufactures a product with a unit variable cost of RO 95 and a unit sales price of RO 220. Fixed manufacturing costs were RO 480,000 when 10,000 units were produced and sold. The company can sell an additional 1,000 units at RO 140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Select one: O a. Income would increase by RO 140,000. b. Income would decrease by RO 35,000. O c. Income would increase by RO 40,000. O d. None of the answers are correct. e. Income would increase by RO 45,000
