(Break-even

analysis)

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, 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

35

percent, by what percent would earnings before taxes (and net income) increase?

Question content area bottom

Part 1

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

$99

(Round to the nearest dollar.)

Part 2

b. If sales should increase by

35

percent, by what percent would earnings before taxes increase?

enter your response here%

(Round to two decimal places.)