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In the month of April, Robles Salon gave 2,500 haircuts, shampoos, and permanents at an average price of $40. During the month, fixed costs were
In the month of April, Robles 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. 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) Compute the margin of safety dollars and as a ratio. Actividad 2: Anlisis incremental Robles Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Coyle Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $22,000. Instructions Prepare an incremental analysis report for Coyle Company which can serve as informational input into this make or buy decision
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