Question

​(​Break-even analysis​) You have developed the income statement in the popup​ window, ___ ​, for the...

​(​Break-even analysis​) You have developed the income statement in the popup​ window, ___ ​, 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 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 40% percent, by what percent would earnings before taxes​ (and net​ income) increase?

Sales 51,090,139
Variable costs (27,913,000)
Revenue before fixed costs 23,177,139
Fixed costs (15,374,000)
EBIT 7,803,139
Interest expense (1,664,595)
Earnings before taxes 6,138,544
Taxes at 22% (1,350,480)
Net income   ˜. 4,788,064

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