A company sells products X and Y, X represents 40% of the total turnover. The margin on variable costs is 30% in the case of X and 60% in the case of Y. The fixed costs amount to $200,000. What would be the total turnover needed for the company to achieve a target profit of $40,000 before taxes?

A company plans to sell one of its divisions that generates $20,000 in variable cost margin. An amount of $50,000 of common fixed costs is allocated to the division, of which $5,000 cannot be eliminated. The effect of selling this division on the profit will be to increase it by how much?

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To calculate the total turnover needed for the company to achieve a target profit of 40000 before ta... View the full answer