Determine the breakeven point in sales dollars

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Reference no: EM13793525

Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows:

Sales Operating expenses

Variable expenses Fixed expenses

Total expenses Operating Profit

$32,200,000 7,500,000

$46,000,000

39,700,000

$ 6,300,000

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 10 percent?

Reference no: EM13793525

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