Control Your organisadmintows you to use see out had service. You get to Privacy Settings. These optional doud-backed services are provided to you under the Micros Services Agreement F32 f A 1 G H 1 A B D Question 4 (10 marks) E In the month of January Balance Massage served 800 clients at a cost of $100 per massage. The variable 2 costs are 65% of sales, and the monthly fixed costs amount of $15,000. 3 4 Clients Served 800 5 Selling price per client $ 100 6 Variable costs per client $ 65 7 Total fixed costs $ 15,000 8 9 10 Calculate the following: 11 12 1) What is the Contribution margin per service? (1 mark) 13 14 2) How many clients must be served to break even? (1 mark) 15 3) How many clients must be served if Balance Massage would 16 like to obtain a target operating income of $8,000? (1 mark) 17 4) Assuming the actual sales below calculate the margin of safety in (a) dollars and (b) as a 18 ratio. 19 Actual sales $ 60,000 20 (a) margin of safety in = Coversheet Q1 Q2 Q3 Q5 Q6 Formula Sheet + hide Thanks for using once we've made some updates to the privacy is to give you more control Your brows you to severouded Yogetto de Privacy Settings. These optional coud-backed services are provided to you under the Microsch Services Agreement L. F32 fi D G H (a) margin of safety in 21 dollars (1 mark) 22 (b) margin of safety ratio 23 (1 mark) 24 5) Using your answer to number 1, explain what the contribution margin per service means. Make sure you are using language that a non-accountant, can understand. (2 marks) 25 26 27 6) Using your answer to number 2, explain what your answer means. What is the breakeven point? Why should the owner of Balance Massage know this number? (2 marks) 28 04 05 06 Formula Sheet + 0 Tunis for using Office we've made some dates to the prettige te ye you more or your resudut baca resurse Privacy Settings. These optional coud-baded services are provided to you under the Services for F32 A D 29 30 7) Balance Massage is thinking of offering a Gift Card sale to boost cash flow. If they drop the price per service to $90/massage, what is the new break even point in units (services sold)? (1 mark) 31 32 33 34 35