Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales Operating expenses: Variable expenses Fixed expenses Total expenses Operating profit $ 34,850,000 3,075,000 $ 41,000,000 37,925,000 $ 3,075,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $4,050,000. (Do not round intermediate calculations. 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 Operating expenses: Variable expenses Fixed expenses Total expenses Operating profit $ 34,850,000 3,075,000 $ 41,000,000 37,925,000 $ 3,075,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $4,050,000. (Do not round intermediate calculations. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:
$ 41,000,000
Sales
Operating expenses:
Variable expenses
Fixed expenses
Total expenses
Operating profit
$ 34,850,000
3,075,000
1. Breakeven point in sales dollars
2. Required sales in dollars
3. Breakeven point in sales dollars
37,925,000
$ 3,075,000
Required:
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $4,050,000. (Do not round intermediate calculations. 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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