In the month of April, Avante Salon gave 3,100 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $20,900 and variable costs were 75% of sales.

Show and label all calculations 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) What sales are necessary to earn an income of $50,000?

(d) Compute the margin of safety dollars and as a ratio.