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Sales $ 5 0 , 4 3 9 , 3 7 5 Variable costs ( 2 5 , 1 3 7 , 0 0 0

Sales $50,439,375
Variable costs (25,137,000)
Revenue before fixed costs $25,302,375
Fixed costs (10,143,000)
EBIT $15,159,375
Interest expense (1,488,375)
Earnings before taxes $13,671,000
Taxes at 21%(2,870,910)
Net income $10,800,090
(Break-even analysis) You have developed the income statement in the popup window, LOADING..., for the Hugo Boss Corporation. It represents the most recent year's operations, which ended yesterday. 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 30percent, by what percent would earnings before taxes(and net income) increase?
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Part 1
a. What is the firm's break-even point in sales dollars?
$
enter your response here(Round to the nearest dollar.)
Part 2
b. If sales should increase by 30percent, by what percent would earnings before taxes(and net income) increase?
enter your response here%(Round to two decimal places.)

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