Question: VirtualTech Inc. has the following projected figures for the next year: Projected Sales: 1,200,000 Variable Costs: 55% of Sales Fixed Costs: 350,000 Requirements: Calculate the

VirtualTech Inc. has the following projected figures for the next year:

  • Projected Sales: £1,200,000
  • Variable Costs: 55% of Sales
  • Fixed Costs: £350,000

Requirements:

  1. Calculate the contribution margin ratio.
  2. Determine the break-even sales revenue.
  3. If the company desires a target profit of £120,000, calculate the required sales revenue.

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