(Break-even analysis) You have developed the income statement in the popup window, for the Hugo Boss Corporation. It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions:

a. What is the firm's break-even point in sales dollars?

b. If sales should increase by 40 percent, by what percent would earnings before taxes (and net income) increase?

Sales 51,566,297 Variable costs (26,987,000) Revenue before fixed costs 24,579,297 Fixed costs (10,748,000) EBIT 13,831,297 Interest expense (1,703,362) Earnings before taxes 12,127,935 Taxes at 21% (2,546,866) Net income NI