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Determine the breakeven point in sales dollars

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Reference no: EM133062276

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

Sales

 

$33,000,000

Operating expenses:

 

 

Variable expenses

$26,400,000

 

Fixed expenses

3,300,000

 

Total expenses

 

29,700,000

Operating profit

 

$3,300,000

Required -

1. Determine the breakeven point in sales dollars.

2. Determine the required sales in dollars to earn a before-tax profit of $3,900,000.

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

Reference no: EM133062276

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