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LO2 12-2. (Break-even malysis) You have developed the followving income statement for the Hugo Boss Corporation. It represents the most recent year's operations, which ended
LO2 12-2. (Break-even malysis) You have developed the followving income statement for the Hugo Boss Corporation. It represents the most recent year's operations, which ended yesterday. Sales Variable costs Revenue before fxed costs Fixed costs EBIT Interest expense Earnings before taes Taxes at 50% Net income $ 50,439,375 (25,137 000) $25,302,375 (10,143000) $15,159,375 (1488,375) $13,671,000 (6835,500) $6835,500 Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: a. What is the firm's break-even point in sales dollars? b. If sales should increase by 30 percent, by what percent would earnings before taxes (and net income) increase
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