Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In June, Ivanhoe Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $35,040 and variable

image text in transcribedimage text in transcribed

In June, Ivanhoe Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were $35,040 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to O decimal places, e.g. 5,275.) Contribution margin (in dollars) $ Contribution margin (per unit) $ Contribution margin (ratio) % Using the contribution margin technique, compute the break-even sales dollars and sales units. Break-even sales dollars $ Break-even sales units units Compute the margin of safety dollars and as a ratio. (Round answers to O decimal places, e.g. 5,275.) Margin of safety in dollars Margin of safety ratio %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

5. Identify the logical fallacies, deceptive forms of reasoning

Answered: 1 week ago

Question

6. Choose an appropriate organizational strategy for your speech

Answered: 1 week ago