Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2010 as follows:
Sales Operating expenses
Variable expenses Fixed expenses
Total expenses Operating Profit
$32,200,000 7,500,000
$46,000,000
39,700,000
$ 6,300,000
1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $7,250,000. 3. What is the breakeven point in sales dollars if the variable cost increases by 10 percent?