Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9 10 2 points Assume Hairy-Cairy Hair Styling Salon in Asheville provides cuts, perms, and hairstyling services. Annual fixed costs are $250,000, and variable costs
9 10 2 points Assume Hairy-Cairy Hair Styling Salon in Asheville provides cuts, perms, and hairstyling services. Annual fixed costs are $250,000, and variable costs are 60 percent of sales revenue. Sales revenue totaled $750,000. Determine the sales dollar volume required for an annual pretax profit of $200,000. (Do NOT include the $ sign in your answer; round your answer to the nearest dollar.) (Hint: The Contribution Margin Ratio can be calculated as 1.0 minus the variable cost percentage.) (See your chapter 13 notes, page 13) Type your answer... 2 points Assume Hairy-Cairy Hair Styling Salon in Asheville provides cuts, perms, and hairstyling services. Annual fixed costs are $250,000, and variable costs are 60 percent of sales revenue. Sales revenue totaled $750,000. Determine the margin of safety in sales dollars. (Round your final answer to the nearest dollar. Do NOT include the $ sign in your answer.) (Hint: Begin by calculating the break-even point in dollars.) (See your chapter 13 notes, page 15) Type your answer...
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started