Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows:
Sales $ 49,000,000
Operating expenses: Variable expenses $ 26,950,000 Fixed expenses 10,800,000 Total expenses 37,750,000
Operating profit $ 11,250,000
Required:
1. Determine the breakeven point in sales dollars.
2. Determine the required sales in dollars to earn a before-tax profit of $12,870,000.