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(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,
(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 Variable costs Revenue before fixed costs Fixed costs EBIT Interest expense Earnings before taxes Taxes at 24% Net income $51,312,897 (28,541,000) $22,771,897 (11,795,000) $10,976,897 (1,367,736) $9,609,161 (2,306,199) $7,302,962
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