Check my worl Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:
Sales $ 48,000,000
Operating expenses:
Variable expenses $ 28,800,000
Fixed expenses 9,400,000
Total expenses 38,200,000
Operating profit $9,800,000
Required:
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $13,000,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3
. What is the breakeven point in sales dollars if the variable expenses increases by 14% ? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
1. Breakeven point in sales dollars
2. Required sales in dollars
3. Breakeven point in sales dollars