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CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows: Sales $46,000,000 Operating expenses Variable
CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows: Sales $46,000,000 Operating expenses Variable expenses $32,200,000 Fixed expenses 7,500,000 Total expenses 39,700,000 Operating Profit $6,300,000 Required 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000. 3. What is the breakeven point in sales dollars if the variable cost increases by 12 percent?
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