Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:

Required

1. Determine the breakeven point in sales dollars.

2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000.

3. What is the breakeven point in sales dollars if the variable expenses increases by 12%?

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Sales $46,000,000 Operating expenses: Varlable expenses Fixed expenses Total expenses Operating profit $32,200,000 7,500,000 39,700,000 $ 6,300,000