CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projectedincome for the coming year as follows:Sales $46,000,000Operating expenses:Variable expenses $32,200,000Fixed expenses 7,500,000Total expenses 39,700,000Operating profit $ 6,300,000Required1. Determine the breakeven point in sales dollars.2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000.3. What is the breakeven point in sales dollars if the variable expenses increases by 12%?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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CVP Analysis 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.
3. What is the breakeven point in sales dollars if the variable expenses increases by 12%?

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