Chapter $15$ Homework

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$ 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,$ or $$50$ for $$49\mathrm{.}7$