Reference no: EM132573709

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

Sales $44,000,000

Operating expenses:

Variable expenses$28,600,000

Fixed expenses 7,700,000

Total expenses 36,300,000

Operating profit $7,700,000

Required:

Question 1. Determine the breakeven point in sales dollars.

Question 2. Determine the required sales in dollars to earn a before-tax profit of $9,152,500. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Question 3. What is the breakeven point in sales dollars if the variable expenses increases by 9%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)