Assume that last year, Cliff Consulting, a firm in Berkeley, CA$,$ had the following contribution income statement.

CLIFF CONSULTING

Contribution Income Statement

For the Year Ended September $30$

Sales revenue $$2,160,000$

Variable costs

Cost of services $$864,000$

Selling and administrative $108,000972,000$

Contribution margin $1,188,000$

Fixed costs $-$ selling and administrative $792,000$

Before$-$tax profit $396,000$

Income taxes $21\%83,160$

After$-$tax profit $$312,840$

REQUIRED

a$.$ Determine the annual break$-$even point in sales revenue.

b$.$ Determine the annual margin of safety in sales revenue.

c$.$ What is the break$-$even point in sales revenue if management makes a decision that increases fixed costs by $$80,000?$

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$

d$.$ With the current cost structure, including fixed costs of $$792,000,$ what dollar sales revenue is required to provide a before$-$tax profit of $$350,000?$

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$

e$.$ Prepare an abbreviated contribution income statement to verify that the solution to requirement d will provide the desired before$-$tax profit.

Note: Round all answers to the nearest dollar, enter $$49$ for $$49\mathrm{.}3,$ or $$50$ for $$49\mathrm{.}7$