Determine the minimum volume of work

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Reference no: EM131945356

The True North construction company would like to forecast its minimum volume of work (turnover) to “break even” (i.e. cover its corporate overheads) for the coming year. The company’s previous year’s corporate overheads were $500,000. The company anticipates 10% inflation and 5% decrease in the firm for the coming year. It also expects to achieve a gross margin of 5% on its projects, based on past experience. Determine the minimum volume of work that will allow the True North Company to break even at the end of the coming year.

Reference no: EM131945356

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