Question: Managerial accounting practice problem Profitability Analysis Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $105,000, and variable costs

Managerial accounting practice problem

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 breakeven point in sales dollars. $ (b) Determine last year's margin of safety in sales dollars. :5 (c) Determine the sales volume required for an annual profit of $80,000. Round your answer to the nearest dollar. $

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