1) Show formula used or function. show work

2)Show formula used or function. show work

You have developed the income statement for the Hugo Boss Corporation below. 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 30 percent, by what percent would earnings before taxes (and net income) increase? 4 6 DATA S50,439,375 25,137,000 S25,302,375 10,143,000 S15,159,375 1488,375 S13,671,000 6,835,500 S6,835,500 7 Sales 8 Variable Costs 9 Revenue before fixed costs 10 Fixed Costs 11 EBIT 12 Interest expense 13 EBT 14 Taxes 15 Net Income 16 17 SOLUTION 18 a. What is the firm's break-even point in sales dollars? 19 20 21 Break-even point b. If sales should increase by 30 percent, by what percent would earnings berore taxes (and net income) 22 increase? 23 24 Percent of sales increase 25 Operating leverage 26 Financial leverage 27 Combined leverage 28 Percent of earnings increase 29 30%