(?Break-even
analysis?)
You have developed the income statement in the popup?window,
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?, 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 forwritten responses to the following? questions:
a. What is the? firm's break-even point in sales? dollars?
b. If sales should increase by 35 ?percent, by what percentwould earnings before taxes? (and net? income) increase?
a. What is the? firm's break-even point in sales? dollars?
?$26083606
??
?(Round to the nearest? dollar.)
b. If sales should increase by 35 ?percent, by what percentwould earnings before taxes? increase by _______ ?(Round to twodecimal? places.)
question b please!
Sales 50,803,627
Variable costs (21,878,000)
Revenue before fixed costs 28,925,627
Fixed costs (14,851,000)
EBIT 14,074,627
Interest expense (1,031,032)
Earnings before taxes 13,043,595
Taxes at 35% (4,565,258)
Net income ˜NI
