Question: TechWave Ltd has the following projected figures for the next year: Projected Sales: 800,000 Variable Costs: 55% of Sales Fixed Costs: 200,000 Requirements: Calculate the

TechWave Ltd has the following projected figures for the next year:

  • Projected Sales: £800,000
  • Variable Costs: 55% of Sales
  • Fixed Costs: £200,000

Requirements:

  1. Calculate the contribution margin ratio.
  2. Determine the break-even sales revenue.
If the company desires a target profit of £70,000, calculate the required sales revenue

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