Explain what is the firm''s break-even point in sales dollars, Operation Management

Assignment Help:

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?

 


Related Discussions:- Explain what is the firm''s break-even point in sales dollars

Compute the probability that the unit will not last weeks, I am falling beh...

I am falling behind in my homework and need some help please. There are three short questions: 1) A computer has three main modules that have individual reliabilities of 0.77, 0.87

How to determine the capacity requirements, Electronics assembly operates t...

Electronics assembly operates two 8 hours shifts for 275 days per year. Use this information in the table to determine the capacity requirements. Cell Phone Demand forecast (phones

Functions of work measurement, Functions of work Measurement: 1.      ...

Functions of work Measurement: 1.       To analyze  the operations  and to evaluate them  in terms  of time  from the  point  of view  of  controlling  the activity. 2.

Explain what purpose does the project charter serve, a. What purpose does t...

a. What purpose does the Project Charter serve? b. What are the main components or sections of the Project Charter? c. What purpose does the Project Definition Document serve

Explain opportunity costs of capital at tep, How would the EBQ change if th...

How would the EBQ change if the set-up costs were reduced by 50 percent, and the holding costs were reassessed by 40 percent, taking account of the opportunity costs of capital at

Describe ethical to reduce the number of employees, 1. Based on GM's ...

1. Based on GM's current condition, do you think it is ethical to reduce the number of employees? Why or why not?

Explain external competitive policies and techniques, 1. How might a compan...

1. How might a company's business strategy affect the internal alignment policies and techniques of its Total Compensation system? 2. How might a company's business strategy affect

OR, Explain OR Models

Explain OR Models

Describe find the shortest route from node 1 to node 6, Find the shortest r...

Find the shortest route from Node 1 to Node 6. From Node To Node Distance 1 2 150 1 3 200 2 3 100 2 4 200 2 5 50 3 4 350 3 5 300 4 6 100 5 6 100 Which Answer is it? 300 450 550 650

Find what is the labour productivity per dollar, Klein Karpet cleaned 65 ru...

Klein Karpet cleaned 65 rungs in October, consuming the following resources: Labour: 520 hours at$13 per hour Solvent: 100 gallons at $5 per gallon Machine rental: 20 days at $50 p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd