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Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following Break-even point

Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following

  1. Break-even point (in units and amount)
  2. PV ratio
  3. Margin of Safety (as amount and as percentage)

OMR

Sales (actual)

800,000

Total fixed cost

450,000

Selling price per unit

275

Variable cost per unit

125

Question 2: Muscat Company has the following information.

OMR

Fixed Cost

8750

Break even Sales

16000

  1. PV Ratio
  2. Profit when sales are 20000
  3. New BE point if selling price is reduced by %25

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