Leverage analysis) You have developed the following income statement for your corporation. It represents the most recent year’s operations, which ended yesterday.,Sales 45,750,000,Variable Costs 22,800,000,Revenue before fixed costs 22,950,000,Fixed costs 9,200,000,EBIT 13,750,000,Interest Expense 1,350,000,Earnings Before Taxes 12,400,000,Taxes at 50% 6,200,000,Net Income 6,200,000,Your supervisor in the controller 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 25%, by what percentage would earnings before taxes (and net income) increase?,
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