Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In June, Wildhorse Salon gave 4,200 haircuts, shampoos, and permanents at an average price of $45. During the month, fixed costs were $45,000 and variable
In June, Wildhorse Salon gave 4,200 haircuts, shampoos, and permanents at an average price of $45. During the month, fixed costs were $45,000 and variable costs were 75% of sales. (a) Determine the contribution margin in dollars, per unit, and as a ratio. (Round per unit value to 2 decimal places, eg. 52.75 and final answer to O decimal places, eg. 5,275.) Contribution margin (in dollars) Contribution margin (per unit) Contribution margin (ratio) $ % Using the contribution margin technique, compute the break-even point in places, e.g. 1,225.) Break-even point $ Break-even point units Compute the margin of, safety in dollars and as a ratio. (Round answers Margin of safety 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