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Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: $45,000,000 Sales Operating expenses: Variable expenses
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: $45,000,000 Sales Operating expenses: Variable expenses 36,000,000 Fixed expenses 4,500,000 Total expenses 40,500,000 Operating profit $ 4,500,000 Required: 1. Determine the breakeven point in sales dollars. Breakeven point in sales dollars 2. Determine the required sales in dollars to earn a before-tax profit of $5,500,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Required sales in dollars 3. What is the breakeven point in sales dollars if the variable cost increases by 8%? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) reakeven point in sales dollars
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