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Sales 51,089,297 Variable costs (22,433,000) Revenue before fixed costs 28,656,297 Fixed costs (15,576,000) EBIT 13,080,297 Interest expense (1,578,195) Earnings before taxes 11,502,102 Taxes at 24%
Sales 51,089,297 Variable costs (22,433,000) Revenue before fixed costs 28,656,297 Fixed costs (15,576,000) EBIT 13,080,297 Interest expense (1,578,195) Earnings before taxes 11,502,102 Taxes at 24% (2,760,504) Net income NI 8,741,598
please answer both A and B
(Break-even analysis) You have developed the income statement in the popup window, , 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 35 percent, by what percent would earnings before taxes (and net income) increase? a. What is the firm's break-even point in sales dollars? $ (Round to the nearest dollar.)Step by Step Solution
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