Question
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 46,000,000 Operating expenses: Variable
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year 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. (Round your answer to the nearest whole dollar amount.)
3. What is the breakeven point in sales dollars if the variable expenses increases by 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year 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. (Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started