Profitability analysisassume a local cost cutters provides, Ask an Expert

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Profitability Analysis

Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $105,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $225,000.

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

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

Round your answer to the nearest dollar.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91779318

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