Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:

Sales		$ 38,000,000
Operating expenses:
Variable expenses	$ 24,700,000
Fixed expenses	6,650,000
Total expenses		31,350,000
Operating profit		$ 6,650,000

Required:

1. Determine the breakeven point in sales dollars.

2. Determine the required sales in dollars to earn a before-tax profit of $7,770,000. (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 15%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

\begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ 1. } & Breakeven point in sales dollars \\ \hline 2. & Required sales in dollars & \\ \hline 3. & Breakeven point in sales dollars & \\ \hline \end{tabular}