Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the...
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Accounting
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:
Sales
$
46,000,000
Operating expenses:
Variable expenses
$
32,200,000
Fixed expenses
7,500,000
Total expenses
39,700,000
Operating profit
$
6,300,000
Required:
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000. (Round your answer to the nearest whole dollar amount.)
3. What is the breakeven point in sales dollars if the variable expenses increases by 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 46,000,000 Operating expenses: Variable expenses $ 32,200,000 Fixed expenses 7,500,000 Total expenses 39,700,000 Operating profit $ 6,300,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000. (Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
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