In the month of April, Avante Salon gave $2,500$ haircuts, shampoos,

and permanents at an average price of $$40.$ During the month, fixed

costs were $$20,000$ and variable costs were $75\%$ of sales. Show your

work.

Instructions

$($a$)$ Determine the contribution margin in dollars, per unit, and as a

ratio.

Contribution margin in dollars $=$

Unit Contribution Margin $=$

Contribution Margin Ratio $=$

$($b$)$ Using the contribution margin technique, compute the break$-$even

point in dollars and in units.

Break$-$even point in dollars $=$

Break$-$even point in units $=$