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

Change as well generating positive organizational behaviour, One of the con...

One of the constants in organizations is the presence of change. In almost all change scenarios, human behaviour is impacted. However, organizational members often resist change. W

Define what is the probability that the laptop will perform, An undergradua...

An undergraduate business student has purchased a laptop computer for use during exams. This laptop is perfectly reliable except for two parts: its microchip, which has a failure r

Explain how else might national origin discrimination occur, National origi...

National origin discrimination is prohibited against a job applicant or employee. Besides discriminating against the job applicant or employee directly, how else might national ori

MBA, Describe the various approahes to tqm

Describe the various approahes to tqm

Location decisions, what are the factors to be considered when making locat...

what are the factors to be considered when making location decisions

Transportation, I have a transportation problem which is given below: The ...

I have a transportation problem which is given below: The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The

The acronym sdlc relates to which cycle, The acronym SDLC normally relates ...

The acronym SDLC normally relates to It relates to system (or software) development lifecycle

Give a specific definition of time study, Give a specific definition of tim...

Give a specific definition of time study. Time study It is defined as a work measurement technique for recording the times and rate of working for the component of a speci

Explain work is a combination of precision machining, Layout Homework Probl...

Layout Homework Problems 6. Avalanche, Inc. is a manufacturer of premium snow skis. The work is a combination of precision machining and skilled craftsmanship. Before completion, s

What does it mean to ask that hrm plays a strategic role, What does it mean...

What does it mean to say that HRM plays a strategic role in driving organizational performance? Consider recruiting, performance appraisal, and compensation strategies as part of y

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