Profitability Analysis

Assume Strands Salon, a San Diego hair salon, provides cuts, perms, and hairstyling services. Annual fixed costs are $$225,000,$ and variable costs are $45$ percent of sales revenue. Last year's revenues totaled $$450,000.$

$($a$)$ Determine its break$-$even point in sales dollars.

Round answer to the nearest dollar.

$Answer $1$

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

Round answer to the nearest dollar.

$Answer $2$

$($c$)$ Determine the sales dollar volume required for an annual pretax profit of $$200,000.$

Round your answer to the nearest dollar.

$Answer $3$