Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows:

Required
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $7,050,000.
3. What is the breakeven point in sales dollars if the variable cost increases by 10percent?
 

Sales S46,000,000 Operating expenses Variable expenses $32,200,000 7,500,000 Fixed expenses Total expenses 39,700,000 $ 6,300,000 Operating Profit