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One of the industrial companies produces product , and it sells the unit at a price of OMR, and the cost of producing and selling
One of the industrial companies produces product , and it sells the unit at a price of OMR, and the cost of producing and selling the unit is the following: direct materials 15 OMR, direct wages 9 OMR, indirect variable industrial costs 12 OMR, marketing costs 12 OMR The total fixed costs of the company are 900000 OMR, distributed between industrial, marketing, and administrative activities, which are 50% , 30% , 20% respectively.
Find the followings:
A. Calculate the break-even point in units and value
B. Calculating the margin of safety ratio if the planned sales are 55000 units, with a comment on the result and suggesting what it deems appropriate.
C. Calculate the number of units to be sold to achieve a 20% safety margin.
D. If the company wants to make 20% of the sales, calculate the sales value
E. If the selling price increases by 25%, variable costs increase by 20%, industrial fixed costs increase by 10%, and fixed marketing costs increase to an amount of 300,000 OMR. Find the impact this has on the break-even point with an explanation of the result
the price is 60 OMR
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