Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started