By what percent would earnings before taxes increase

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Reference no: EM13296889

You have developed the following income statement for the Hugo Boss Corporation. It represents the most recent year's operations, which ended yesterday. Sales $ 50,439,375 Variable costs (25,137,000) Revenue before fixed costs $ 25,302,375 Fixed costs (10,143,000) EBIT $ 15,159,375 Interest expense (1,488,375) Earnings before taxes $ 13,671,000 Taxes at 50% (6,835,500) Net income $ 6,835,500 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?

Reference no: EM13296889

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