# ecr question

princess246
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**49**Registered
Im trying to find the revised target profit for my operating statement but im not sure how i get my rveised profit figure? i have worked out my contribution per unit and break even points in units and margin of safety.

Could anyone point me in the right direction please?

Thanks:confused1:

Could anyone point me in the right direction please?

Thanks:confused1:

## Comments

2,034Registered, ModeratorFor 1. ...........

Total Fixed Costs + Target Profit= Units of sales needed to achieve target profit......................Contribution per unit sold

For 2. ...........

Total Fixed Costs + Target Profit= Sales revenue needed to achieve target profit........... PV ratio (Contribution divided by sales revenue)

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www.sandyhood.com

49Registeredmy operating profit is 192,400

my fixed costs are 173,000

so do i then add my fixed and operating? and divide by contibution divided by sales revenue?

my anwser is not looking right cant think where im going wrong

2,034Registered, ModeratorI've copied the formulae and added values where I can but the words in blue need values

For 1. ...........

Total Fixed Costs + Target Profit= Units of sales needed to achieve target profit......................Contribution per unit sold

For 1. ...........

£173,000 += Units of sales needed to achieve target profitTarget Profit......................Contribution per unit sold (£365,400/

units sold)For 2. ...........

Total Fixed Costs + Target Profit= Sales revenue needed to achieve target profit........... PV ratio (Contribution divided by sales revenue)

For 2. ...........

£173,000 += Sales revenue needed to achieve target profitTarget Profit........... PV ratio (Contribution divided by sales revenue) (£365,400/

total sales revenue)[email protected]

www.sandyhood.com

49Registered4,234Registeredshame ive got no job tho !!!

just practice the examples in the books !

49RegisteredBut thankyou i will practice my brain has turned to mush and i can for the life of me remember how to do it.

49Registered4,234Registeredi know i sounded a little bitter about that. but its just there was about 15 in our class at the start of this second year and about 8 havee dropeed out because they found it too hard and all of them worked in an accounting area !

:thumbdown:

2,034Registered, ModeratorIf you still need some help after you find it, I'm sure I'm not alone in being willing to help.

[email protected]

www.sandyhood.com