Solution-What will sale turnover need to be in february to

What will sale turnover need to be in february to hit target

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Reference no: EM132756408

Problem 1: IKE Computers aim to grow monthly gross profit by 1.5%. If all costs remain constant, what will the sales turnover need to be in February to hit the target?

Step 1 - Calculate the required gross profit increase. 36,521 x 1.5% = £547.82. Given that costs are constant, this means the Net Turnover needs to increase
By £547.8 too. So the Net Turnover needs to be £547.8 + £238,521 = £239,068.8.

Step 2 - We have worked out the Net Turnover, but the question asks for Sales Turnover (i.e. before the sales tax of 14.0% is deducted). So Sales Turnover = 239,068.8 ÷ 86.0% = £277,986.98.

Reference no: EM132756408

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What will sale turnover need to be in february to hit target

Reference no: EM132756408

Reference no: EM132756408

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