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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?
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define L shape lay out
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