CoursHeroTranscribedText

Al-Naseem Company fixed costs are OMR 75,000 per year. The variable cost of each unit is OMR 15, and sold for OMR 45 per unit. The company sold 4,000 units during the prior year. (Ignore income taxes) Required 1. Compute the break-even point in units. 2. How many unit must the company sell to earn a target profit of OMR 20,000? 3. The sales manager believes that a reduction in the sales price to OMR 40 will result in orders for 200 more units each year. Should the price change discussed above be made? Explain.