1) What is the firm's break-even point in sales dollars?

2) If sales should increase by 20 percent, by what percent would earnings before taxes (and net income) increase?

(Click on the following icon in order to copy its contents into a spreadsheet.) Sales Variable costs Revenue before fixed costs Fixed costs EBIT Interest expense Earnings before taxes Taxes at 25% Net income $51,998,592 (26,978,000) $25,020,592 (11,656,000) $13,364,592 (1,952,502) $11,412,090 (2,853,023) $8.559,067