South Pole / EY collaboration Profit and Loss Account for the latest financial year $million Solar...

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South Pole / EY collaboration Profit and Loss Account for the latest financial year $million Solar Wind Farms Offshore Wind Tidal Carbon capture and storage (CCS) Total Sales 38.00 21.00 55.00 40.00 28.50 Operating Costs 18.00 12.00 49.00 20.00 27.20 Gross profit 20.00 9.00 6.00 20.00 1.30 Tax (20% of 7.60 4.20 11.00 8.00 5.70 total sales) Net profit 12.40 4.80 -5.00 12.00 -4.40 8.6) As a partnership, we had high hopes regarding the profitability of offshore wind technology, however, it has performed well below expectations. The targeted net profit was $2.6 million. If costs remain the same, by what percentage will total sales need to increase in order to reach the target figure? (Please provide an answer to the nearest 1% - do NOT add the % symbol as this field must be in number format only) South Pole / EY collaboration Profit and Loss Account for the latest financial year $million Solar Wind Farms Offshore Wind Tidal Carbon capture and storage (CCS) Total Sales 38.00 21.00 55.00 40.00 28.50 Operating Costs 18.00 12.00 49.00 20.00 27.20 Gross profit 20.00 9.00 6.00 20.00 1.30 Tax (20% of 7.60 4.20 11.00 8.00 5.70 total sales) Net profit 12.40 4.80 -5.00 12.00 -4.40 8.6) As a partnership, we had high hopes regarding the profitability of offshore wind technology, however, it has performed well below expectations. The targeted net profit was $2.6 million. If costs remain the same, by what percentage will total sales need to increase in order to reach the target figure? (Please provide an answer to the nearest 1% - do NOT add the % symbol as this field must be in number format only)

Answer rating: 100% (QA)

To determine the percentage increase in total sales needed to reach the target net profit we first n... View the full answer