E6-2 In the month of June, Jose Hebert's Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 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 in dollars and as a ratio. E6-1 The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Instructions (a) Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars. (b) If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? upute break-even point E6-4 Comfi Airways, Inc., a small two-plane passenger airline, has asked for you. prepare CVP income tance in some basic analysis of its operations. Both planes seat 10 passengers each, and ement. they fly commuters from Comfi's base airport to the major city in the state, Metropolis. 1), AP Each month, 40 round-trip flights are made. Shown below is a recent month's activity in the form of a cost-volume-profit income statement. www.freebookslides.com Exercises Instructions (a) Calculate the break-even point in (1) dollars and (2) number of passenger flights. (b) Without calculations, determine the contribution margin at the break-even point. (c) If ticket prices were decreased by 10%, passenger flights would increase by 25%. However, total variable costs would increase by the same percentage as passenger flights. Should the ticket price decrease be adopted