19.6 The following information applies to Ayre Limited for the two years to 31 March 2008 and 2009, respectively:

Year Sales Profits

£000 £000 31.3.2008 750 100 31.3.2009 1000 250 Required:

Assuming that the cost relationships had remained as given in the question, calculate the company’s profit if the sales for the year to 31 March 2009 had reached the budgeted level of £1200000.