Chapter19Homework

1. In the month of March, Style Salon services 560 clients at an average price of $120 per client. During the month fixed costs were $21,024 and variable costs were $72 per client.

Instructions

1. (a) Determine the contribution margin in dollars, per unit, and as a ratio.
2. (b) Compute the break-even point in dollars and in units.
3. (c) Compute the margin of safety in dollars and as a ratio.