E 12. Ella Mae Simpson is the owner of a hairdressing salon in Palm Coast, Florida.

Her salon provides three basic services: shampoo and set, permanents, and cut and blow dry. The following are its operating results from the past quarter:

Contribution Number of Total Margin in Type of Service Customers Sales Dollars Shampoo and set 1,200 $24,000 $14,700 Permanents 420 21,000 15,120 Cut and blow dry 1,000 15,000 10,000 2,620 $60,000 $39,820 Total fixed costs 30,000 Profit $ 9,820 Compute the breakeven point in units based on the weighted-average contribution margin for the sales mix.

Contribution Margin and Profit Planning