Question
1) In the month of March, Style Salon services620clients at an average price of $ 100 . During the month, fixed costs were $ 14,016and
1)
In the month of March, Style Salon services620clients at an average price of $ 100 . During the month, fixed costs were $ 14,016and variable costs were68 % of sales.
Determine the contribution margin in dollars, per unit, and as a ratio.(Round answers to 0 decimal places, e.g. 1,225.)
Contribution margin$:
Contribution margin per unit$:
Contribution margin ratio:
Using the contribution margin technique, compute the break-even point in dollars and in units.(Round answers to 0 decimal places, e.g. 1,225.)
Break-even sales$:
Break-even sales (units):
2)
All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation$ 1,400per month
Advertising$ 2,287per montn
Insurance$ 1,000per month
Weed and feed materials$ 9per lawn
Direct labor$ 7per lawn
Fuel$ 2per lawn
All That Blooms charges $ 61per treatment for the average single-family lawn.
Determine the company's break-even point in number of lawns serviced per month.
Break-even point (lawns):
Determine the company's break-even point in dollars.(Round answer to 0 decimal places, e.g. 1,225.)
Break-even point $:
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