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A. In the month of April, QQ Salon gave 2, 500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed
A. In the month of April, QQ Salon gave 2, 500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $20,000 and variable costs were 75% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margin technique, compute the break-even point in dollars and in units. (c) Compute the margin of safety dollars and as a ratio. B. Determine the missing amounts. C FiFi Co. estimates that variable costs will be 70% of sales and fixed costs will total $2, 160,000. The selling price of the product is $10, and 750,000 units will be sold. Instructions Compute the break-even point in units and dollars. Compute the margin of safety in dollars and as a ratio. Compute net income
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