Question
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales$44,000,000Operating expenses:Variable expenses$28,600,000Fixed expenses7,700,000Total expenses36,300,000Operating profit$7,700,000
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:
Sales$44,000,000Operating expenses:Variable expenses$28,600,000Fixed expenses7,700,000Total expenses36,300,000Operating profit$7,700,000
Required:
1.Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $9,152,500.(Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
3. What is the breakeven point in sales dollars if the variable expenses increases by 9%?(Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
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