Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 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 $7,250,000.
3. What is the breakeven point in sales dollars if the variable cost increases by 10percent?

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Sales Operating expenses $A6,000,000 Variable expenses Fixed expenses Total expenses $32,200,000 7,500,000 39,700,000 $6,300,000 Operating Profit