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

Sales 51,249,586 Variable costs (26,898,000) Revenue before fixed costs 24,351,586 Fixed costs (14,253,000) EBIT 10,098,586 Interest expense (1,869,605) Earnings before taxes 8,228,981 Taxes at 21% (1,728,086) Net income NI