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You have developed the income statement in the popup window, Sales $51,864,845, Variable cost ($26,101,000), Revenue before fixed costs $25,763,845, Fixed Costs ($12,373,000), EBIT $13,390,845,
You have developed the income statement in the popup window, Sales $51,864,845, Variable cost ($26,101,000), Revenue before fixed costs $25,763,845, Fixed Costs ($12,373,000), EBIT $13,390,845, Interest expense ($1,503,522), Earnings before Taxes $11,887,323, Taxes at 23% ($2, 734, 084), Net Income $9,153,239, 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 25 percent, by what percent would earnings before taxes (and net income) increase
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