(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. If sales should increase by 40 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 22% Net income $50,545,404 (27,346,000) $23,199,404 (12,486,000) $10,713,404 (1,054,434) $9,658,970 (2,124,973) $7,533,997