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Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve its ability to remove tough stains from ceramic tiles. The company's

Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve its ability to remove tough stains from ceramic tiles. The company's contribution margin is 25 percent and its current break-even point is $435,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $10,000.
Required:
Determine the company's current fixed costs.
Determine the company's new break-even point in sales.
After the purchase of the equipment, how much revenue does the company need to generate a profit of $125,000?
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