Question
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
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 your answer to the nearest dollar. $Answer
(b) Determine last year's margin of safety in sales dollars. Round your answer to the nearest dollar. $Answer
(c) Determine the sales dollar volume required for an annual pretax profit of $200,000. Round your answer to the nearest dollar. $Answer
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