Profitability Analysis Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 50 percent of sales revenue. Last year's revenues totaled $270,000. (a) Determine its break-even point in sales dollars. $Answer

(b) Determine last year's margin of safety in sales dollars. $Answer

(c) Determine the sales dollar volume required for a pretax annual profitof $90,000. $Answer

Profitability Analysis Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 50 percent of sales revenue. Last year's revenues totaled $270,000. (a) Determine its break-even point in sales dollars. $ 240,000 V (b) Determine last year's margin of safety in sales dollars. $ 70,000 X (c) Determine the sales dollar volume required for a pretax annual profit of $90,000. 39 420.000 s/